Using Log Files to set ad rates

Posted By: thejenn ()
Posted On: 2003-Sep-03 15:37

I was just curious ot kick an idea around in here...

I was thinking that for a Web site that accepts third-party advertising, it would be interesting to set ad rates based on information that you pull from your log files.

I'm not just talking about traffic stats here. It's certainly mainstream to set ad prices by the number of visitors to a certain area of the site, but what about setting ad prices by the conversion rates of different topics on your site.

For example, let's say you have an information based site with travel reviews on it. Your visitors can fill out a form online (generating leads) that requests information on making reservations, or requests information from activity and lodging vendors.

So, if you setup your logs to track which keyword phrases convert to leads at the highest rate, you could more accurately value different ads based on those figures. Let's say that "bed and breakfast" phrases convert to leads at a much higher rate than "camping" phrases. (But the traffic produced by each phrase is roughly the same.)

Wouldn't it make perfect sense to price the bed and breakfast ads higher than the camping ads?

I'm curious to know if anyone out there is doing this, or if anyone is using their log file information in a different way to set ad pricing, or even to recruit ad buyers...