How Much To Charge For Ad Space?

[Lisa-BFWM]

How do you calculate or figure out a fair price to charge for adspace?
I typically look at the revenue an adsense ad generates for me each month as guide or the very scientific if someone offers me money and I like them method ..

Thanks!
Lisa

[mktgbiz]

I think it depends on how common the site is.

I don't charge for advertising on my sites, nor do I have adsense running on them, however I do have an ezine that has just over 1600 nsubscribers and I have been charging $39.95 per month or $100 for 3 months.

And I charge that amount because there is no other newsletter like it in the fishing industry.

So, I think the less common a site or newsletter is the more you can charge......assuming it is getting traffic.

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[scottco]

Lisa:

If you're talking about website advertising, you might check out the Internet Advertising Bureau (IAB) - iab.net

I haven't been there for a while, so not sure what kind of info along this line they offer for free -- but have in the past provided some reports on standards for this kind of thing.

There are many variables to consider, and several ways to "skin that cat" -- but IAB's site might give you some ideas on some standards.

[Peter Bowen]

Charge as much as the buyer is willing to pay.

[MikeAnd]

Instead of comparing it to adsense, I'd recommend getting the rates for competitive sites and charging the same price that advertisers are paying to your competition. I think you'll find that this will be a bit higher than adsense and yet customers will still be willing to pay it.

[RealBiz]

I don't know, i have 2000 uniques a month and a sell 125x125 banners per 20$. Still none sold.

[Sporkman]

Originally Posted by mktgbiz

...however I do have an ezine that has just over 1600 nsubscribers and I have been charging $39.95 per month or $100 for 3 months.

Wow, that's some nice revenue.

[pete]

It depends on your audience. I've got one group on a forum that I could offer $10 bills for $5 and no one would buy. Most don't have $2 to spare, just looking for free ways to make money onthe net.

Then I have another group which feels like "it's only $5, go for it."

And there is one other group I could probably do the opposite, sell $5 bills for $10 and get some orders.

The correct price is the one you bump your way up to until sales fall off, then come down to the previous price for a year and try again.

A large retailer did a trial about 2 years ago with a group of womens dresses. They offered them at their regular markup at a price of about $ 34.95. Sold fair, but not great.

They dropped them to $ 29.95, but not as a sale item, just everyday $ 29.95. No real change in sales.

They then RAISED the price to $ 39.95 and the things started flying out the door!

Went to $ 42 or $44.95 and sales fell back off.

Over the test period they sold something like 85% at the $ 39.95 price.

So, start fairly low and have incremental increases until income begins to fall off. Keep in mind that 100 at $35 is better than 80 at $40.
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