Setting local website ad rates?

From: Barry Parr <barry_at_parr.org>
Date: Thu 20 Nov 2003 12:13:31 -0600

I'm preparing to launch a news site for a relatively small (population
25,000), middle-class community.

Advertising will be limited (at least initially) to Google-style text ads
in right-hand column. There will about three ads on each page.

The local newspaper has a paid (unaudited?) circulation of 7,000 (roughly
70% of households) and charges $14/column inch. So, the CPM for one
column inch is $2. With a three-month contract, the CPM drops to $1.64.

The advertisers will generally be local merchants who are not used to
advertising online. To cover the overhead in taking the order and billing
for it, the minimum buy should probably be around $50. To encourage
trial, it shouldn't be a lot higher, perhaps as low as $45.

Any idea what a reasonable CPM for this site would be?

I'm planning a free trial ad package in exchange for in-store promotion.
Any other suggestions on launching my site among potential advertisers?

bp

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Barry Parr
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I think out loud at MediaSavvy http://mediasavvy.com
Barry Parr's daily analysis of Internet media news and research
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Received on Thu Nov 20 2003 - 12:13:31 CST