CPM: How has/will it vary over time?
I am interested to know how banner ad rates have
changed over the last five years and how they are
likely to develop. This is because banner ad rates are
a key element in valuing the firms that I am looking at
in my teaching and research.
I have been leafing through the contributions on the
discussion about banner ad rates, and have found
references to several useful sites esp.
http://adsonline.about.com/industry/adsonline/aa011000.
htm, which shows ad rates by category and average
$20/CPM, however, these look like rate card numbers
rather than the real world numbers obtained by the
"streetfighters" of the group. The same problem exists
for internet weekly's average CPM number which anyway
only exists for mid 1997 to mid 1998 and is about
$37/CPM at May 98, so presumably this is an average for
some high profile sites and excludes free banners such
as via linkexchange. However, Brian Calvoli and iw are
both to be commended for at least sticking their necks
out and putting an average number per CPM rather than
saying that "it depends" (because of course it depends!
but that shouldn't stop us being able to ballpark an
average!)
If we figure (just for argument's sake) an achieved CPM
of $5 right now, then a CTR of 0.5% implies cost per
clickthrough of $1. One contributor mentioned cost per
acquisition (kris of gator.com), which I am assuming is
a cost per acquired customer details which puts the
emphasis on the referring site to target ads more
effectively so that people who click through are likely
to actualy register.
So, based on some contributors saying they regularly
get 1/10 of rate card and proliferation of link
exchange style ads, what does the community say to an
o-a.com CPM index of $5 as ACHIEVED sale rate for a
banners on the web. If so (or even if not) how does
this compare to last year and where will it go next?
Yours provocatively (?)
John Briginshaw
Email: briginsh_at_haas.berkeley.edu
Web : www.internet-valuation.com
Received on Wed May 03 2000 - 21:26:32 CDT
