Re: Ouch! - From 60% to 40%

From: Mark Brownlow <markbrownlow_at_ibizadmin.com>
Date: Fri 12 Jan 2001 13:02:32 -0500

BRANDI JASMINE <brandi_at_brandijasmine.com> WROTE:
> Also I am sure this falls under "FAQ" - but does anyone
> know what the going rates for banner ads are at
> present? I have been quoted everywhere from $5 to $20
> CPM, but was looking for a more definitive source.

Hi Brandi. A fair question, but I'm afraid there's no
simple answer. You will find sources that quote average
cpms for the Internet as a whole. But that's not a
great help if you're trying to work out how much to
charge for banners at *your* site, which depends on a
lot of factors, such as your site's particular
audience, number of available impressions, banner
position, state of the market, competition, etc. etc.

Here some pointers:

* David Halprin at eMarketer wrote an article on
average cpms for Web advertising as a whole, quoting
various reference sources. See:

http://www.emarketer.com/analysis/eadvertising/20001017_web_cpm.html

* If you sell your 150,000 monthly banner impressions
through one of the generic advertising networks serving
smaller sites, expect a real, net cpm of around US$1 or
less, unless you're very lucky and they happen to drum
up some targeted advertisers for you.

* The best way of assessing the going rate for banner
advertising on your site is to see what similar sites
are charging. Remember though that the cpms they quote
in their media kit (often posted online at the site)
will often be heavily discounted in reality, and this
doesn't tell you how successful they are in actually
selling those banner impressions.

* if you have a well-defined, attractive audience at
your site, think less about banners and more site
sponsorships (see the discussions and references in the
last couple of issues of Online Ads).

* (plug warning) we're covering banner pricing issues
in a series or articles at http://www.ibizBasics.com

Mark

Mark Brownlow -- VP Research
Internet Business Forum, Inc.
http://www.ibizHome.com





Received on Fri Jan 12 2001 - 12:02:32 CST