what are pricing models available for Online Adverisements ?
Most applications on the web work on the Advertisement revenue as a primary focus.
I believe that costing and pricing models are standardized. I wish to know about them.
Does the online advertisements costs vary by Site and Geography ? Is there any good books i can use to learn these.
Good Answers (2)
Chris W.
17 years internet/new media experience.
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Your best bet here is to contact a selection of sites and ask for their rate card.
Costs change somewhat between sites with certain demographics and from country to country.
Also, those sites that can provide better stats and have areas of differing interests to more easily target your target audience will cost more.
then you have your 'models'
CPM - Cost per Thousand 'hits' - this is a count of number of times your ad is served - often the cheapest but obviously also the poorest ROI
CPC - this is cost per click and you pay every time someone clicks your add - better conversion but more expensive. Google use this model.
Conversion - this is where you just have a bespoke deal with a site where you work the campaign in more of a joint effort - and pay the site owner for conversions - this is often the best way for you as you only pay for what you get - but it can be a lot harder then just designing some banners, buttons and towers and distributing them on a bunch of sites.
Be careful here - if you don't know what you are doing you can waste/lose a lot of money very quickly. Be careful when they offer you what is called, 'run of site' - this may sound like a deal but you are just filling gaps in their ad network and although you'll get a load of ads served to people - they are , for the most part, not your target - so why pay for it?
Samuel P.
Vice-President at IAB Canada
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www.IAB.net & www.IABCanada.com are great resources for this answer.
1st - pricing models have been identified in other answers
2nd - pricing specifically is another issue - that'll depend greatly on how you position yourself :
- a premium website or network (that's usually determined by the market, no you, based on your brand positionning)
- an ad network, are you niched or sell RON or individual sites?
- are you a blind ad network (lowest of all)
- regular website
then go hunt the rate card or your equals to see where you should be $ wise.
The other way to do it, the hard way is just set up a rate card, look at a few on line (many are available) and average it out. Then you'll see what buyers are really willing to pay for when you start selling...
More Answers (3)
Allan B.
Director responsible for revenue generation, client delivery and customer service
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I agree with the previous answer (Chris Warrender), the only thing I would add is based around the rate card.
You should be aware that different publishers work in different ways. Some will have a rate card only policy others may be prepared to negotiate.
With regard to the pricing models, I agree there are CPI and CPC models, particularly in the B2C environment, in B2B you will also find time based models where you will pay for a slot at an agreed price for a fixed time period.
As for the actual cost there are a number of variables, these will include geography, sector, competition, time of the year etc. You should research each market you are interested in and this will give you an indication of what you should pay / charge
Let me know if I can help further
Ray V.
Sr. Community Manager at AEGON
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There are a number of yahoo Groups related to that subject in the Financiel section, you might be interested in having a look there..
Chris has give you a good summary above. I would add content sponsorships to this list. and example owul be buying a brading package for Idol or Football that includes branding in and around the content area, perhaps branding in the fantasy games, compeitions, enewsletters etc.
Costs will vary based on site/publisher based on teh strnght of their online brand and the eyeballs/audeience that it commands. premiums are also sort for specialised targettting eg behavioural, geographic, etc.
best way to get a handle on relatvie prices and options is to vist a couple of the larger publishers sites in your target market of the Internet Advertising Bureau at the link below.
