Thursday, August 16th, 12:51 ET
Question: How much could I realistically charge for the adspace on my web page?
Answer from Andrew Baisley:
There are a few questions here, so I will try to answer each individually.
To answer your last question, first… CPC vs CPM:
It really depends on the performance of your audience. Since this is your first campaign, I’m guessing you don’t know how your audience performs. It’s probably wise that you avoid performance-based campaigns until you understand that better.
I’d recommend you do one of two things:
- Run your first campaign as CPM (or as a flat rate, explained below), because you know the expected outcome: (150,000 / 1000) * $CPM = How much money you’ll make.
- Or, run some tests and see how your audience performs. If you have an audience that happens to click on ads a lot, you might do much better with a CPC campaign. There’s no way to know until you test it.
As to how much money you can make… probably not a ton. You said you have 150K uniques, but you didn’t say how many impressions you have. I’ll assume you have 150K impressions (though, I’d guess it’s probably higher than that).
150,000 / 1000 = 150 millie
Most display ads pay $0.10 up to, maybe, a few dollars. Even if you hit the high end and got $2 CPM for a display ad, you’d only make $300 per month. That’s:
(150,000 / 1000) * 2 = $300
If you were on the lower end, maybe $0.50:
(150,000 / 1000) * .50 = $75
Not too exciting, either way.
If your content was video, not text, and you ran a video ad before your content, you might get $8-10 CPM, on the high end, from a network. That’s:
(150,000 / 1000) * 8 = $1,200
That’s much better, but still nothing to retire on.
Having no idea what your site is, what it’s about and who you are (and what your skills are), I’d recommend you look for advertiser who want to directly sponsor your site.
Go to brands directly (forget dealing with their agencies - you’re too small). Develop a media kit. Explain how they can own your highly sought after audience with custom creative for a full month. Then, charge them a lot of money.
These kinds of things go from a few hundred bucks to thousands. It all depends on you:
1. Selling it (putting together the right story and marketing materials)
2. Finding the right brand fit (this is key)
3. Delivering performance
If you do that, your customers will repeat.
You didn’t ask about this, and it may not fit your business at all, but there might be other approaches to monetization. If 150K unique people are visiting your site monthly, they obviously want what you have. Maybe you could charge them for it?
If you charged $1 per month for access to whatever information you’re providing, and had a 10% conversion rate:
150,000 * .1 = 15,000
That’s $15,000 per month in recurring revenue.
Or, maybe you implement a freemium model where you run advertising, but offer users the chance to opt out for $1 per month. That might look something like:
150,000 * .05 = 7,500 opt out, paying you $7,500 per month
150,000 - 7,500 = 142,500 people left to show ads to
You can do the math from there.