ONLINE-ADS>> justifying CPM?

Joe Savelberg (joe_at_euregio.net)
Thu, 17 Apr 1997 17:39:14 +0200

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Hi there,

I'm a long time lurker to this list and today I decided to come out to seek
advice from the experts present here.

I run one of the leading indexes for astrology and horoscopes and I also
sell banner space on this site. So far I was only able to attract one
paying sponsor, but even then, I had to make some compromises. Personally,
I think he gets great value for his money - he pays a flat monthly fee and
gets around 53,000 visitors/month from his banner (he has a CTR of 11.1%)

By running a survey on the site, I have good demographic information about
the visitors (80% women). It is a very targetted audience. However I've
only been able to sell banners at a CPM of US$6.50. When I check other web
sites for their advertising rates for targetted audiences, they charge as
much as $50 per thousand.

How can you justify this kind of price towards your advertiser? What is the
general opinion about offering complete site sponsorship based on a flat
fee? Do you offer a price freeze for a certain period (e.g. 3 months)? What
kind of discounts should be applied when an advertisers signs an insertion
order for several months in advance?

Any insight is appreciated a lot. Thanks in advance.

Kind regards,

Joe.

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