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dobe
Joined: May 22, 2005
# Posts: 2
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Posted: 2005-May-22 14:05
Hi all
I am new to this forum and new to the ad market as well so excuse my somewhat beginner question. I am developing this service that can show ads and show them to specific target groups like down to age,sex,town/country,interests (which the members fill in) and such things. My question is how much should i charge for such a service (CPM)?
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SportsGuy
Staff
Joined: Aug 30, 2002
# Posts: 3600
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Posted: 2005-Sep-03 12:21
Dobe, it's doubt full you're even still kicking around here looking for this info, but for others, this might be useful.
Your ad rates will be determined by what an advertiser will pay.
For a small or new site, I wouldn't pay much. In these cases, I'd likely negotiate a flat rate, anyway.
CPM's are established over time, and need to be based on the volume of traffic you will see. If the traffic you have converts well for advertisers (I don't just mean the users click on the advertisers ads, I mean they actually do what the advertisers need - buy, deposit, etc.), then you can command a higher CPM.
As a media buyer, I am reluctant to spend more than $5 CPM on 90% of the websites I advertise with. Tose rates are creeping up, but only fo rthe sites which perform for me.
Honestly, CPM campaigns are like throwing away money - as an advertiser, I have to be willing to lose all th emoney I pay you for no return - because there's no guarantee to deliver, it's a big risk for the advertiser when testing a new place.
CPC type campaigns are much better from an advertiser's perspective - I only pay for the traffic we agreed to.
So, there's no "easy" answer to your question - setting a CPM rate is trial and error based on you, your traffic and who's willing to actually pay you.
One word of warning - you'd better perform - I mean, you'd better develop traffic and conversions for your advertisers. If not, word will spread fast that you have crap traffic and shold be avoided - this advice is important to remember when you're marketing your own site - you want traffic that'll keep your advertisers happy.
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