How to Set Online Advertising Costs
Selling advertising space on your website or blog can be a lucrative move, but deciding on what to charge can be very confusing. The secret to setting an appropriate rate is determining certain key factors on your website. Here is what to look for that will help you to set online advertising cost.
- Determine your page rank - There are many different tools on the Internet that will help you to determine your page rank. One of the more popular ones is a Firefox add-on entitled Status Search. Potential advertisers will want to know your Google rank as well as your Alexa ranking. If your page has a higher rating than their page does it will help them to increase their ranking. Higher ranking pages can command higher advertising pricing.
- Determine the amount of traffic your site receives - Google Analyticator a WordPress Plugin will insert the code that you need to determine the amount of daily traffic that your site receives.
- Determine the positioning of the advertising sites that you have for sell - Buyers will pay more and are much more likely to advertise with you if you are willing to locate their ads at the tops of your webpages. This is because visitors can see the advertisements quicker in these locations. While these premium locations may not be available, just know that they command higher rates.
- Determine the size of the ads that you are selling - You can charge more for larger ads but you will have fewer of them because of the space that they will occupy on your site. Larger ads also mean fewer advertising spaces to fill. Do the math and see if multiple smaller ads will be more advantageous than larger ads or vice versa.
- Calculate the cost of your advertising using the information that you have collected - Research the Internet for sites that are in your same niche and see what they are charging for advertising. Compare their cost and page ranking to yours. Determine the "Cost per Mille" by taking the amount they are charging and dividing it by their monthly traffic and remove the last three zeros. Once you determine their rate, look at your page ranking according to theirs and then raise or lower your prices depending on what you find.