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How much to charge per ad?

Discussion in 'BlackHat Lounge' started by SpellZ, Aug 5, 2009.

  1. SpellZ

    SpellZ Regular Member

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    Is there a way (or a forumla) to 'somewhat' calculate how much money should you charge a person when they want to put an ad on your site?

    If there isn't, then how do YOU calculate it?
     
  2. LaveymorT

    LaveymorT Registered Member

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    Do some research on your particular niche.
    See how much you could get per CPM through a network.

    Multiply that with 1.15-1.25 (avarage network cut) and then multiply it with your weekly/monthly or on whatever time basis you sell your ad.

    Voila, there is your "market" price.

    EDIT: I can do better than that!

    Lets say you get 10.000 UV a day.
    Your research shows that you can get $1 per CPM from various networks.

    If you sold your ad space via the network, you would make $10 a day.
    Now we imagine that the network charges 20%, that would mean that the advetiser need to spend $10 + 20% = $12

    So with out beeing greedy you can charge $12 per day, multiply that with the number of days you host the ad.
    Keep in mind that it often pays better to do private deals, so if the above examples was true, I would charge $15 per day.
     
    Last edited: Aug 5, 2009
  3. SpellZ

    SpellZ Regular Member

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    10,000 visitors a day for 15$/day

    damn lol, I need to get my UV up
     
  4. LaveymorT

    LaveymorT Registered Member

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    What I wrote were pure examples on how I would calculate it :)