How to set online advertising rates

Written by christina crowe
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How to set online advertising rates
Make more money with the proper advertising rate. (3D dollar sign with multiple smaller dollar signs. image by Steve Johnson from Fotolia.com)

Whether you own a blog or business, setting your rates is crucial if you want to sell your own advertisement space. Many webmasters opt to sell their own ad blocks to potential buyers, since this increases the potential of sales and the amount of money earned. However, if it's your first time selling ad space or your blog is new to the market, deciding on a price to set may turn out to be a confusing task. By determining key factors on your website, you can set an appropriate advertising rate.

Skill level:
Easy

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Things you need

  • Computer
  • Website

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Instructions

  1. 1

    Determine your Google page rank and Alexa ranking. Many potential customers look at your website's rankings when deciding whether to purchase ad space. According to Dosh Dosh, if your website has a high page rank, it will increase the page rank of the buyers' websites. There are many tools that will help you determine your page rank. A well known Firefox add-on is SearchStatus.

  2. 2

    Find out how much monthly traffic you receive on your website. Google Analytics is a tool that will let you know how many visitors you receive on a daily basis if you have the code in place on your website. A Wordpress plugin that will place your Google Analytics code on your website for you is Google Analyticator.

  3. 3

    Determine where you'll put buyers' advertisements on your web page. Buyers like having their ads positioned at the top of a website, since visitors are more likely to notice them there. A buyer will most likely purchase ad space from you if advertisements are positioned at the top, so you can probably charge more for ad space.

  4. 4

    Consider the sizes of the advertisements you'll display. Larger sizes allow you to increase your advertisement rates, though they reduce the number of customers you can receive because they take up more space on your website.

  5. 5

    Calculate your advertisement rate from the information you've collected. Browse around the Internet for websites related to your niche to find out their advertisement rates. Determine their "Cost-Per-Mille" by dividing the amount of money they're charging by their monthly traffic and editing out the last three zeros, according to Paycheckblog.com. For example, if your competitors are charging £130 for a 125 by 125 ad block and they receive 200,000 monthly visitors, their advertising rate per thousand is 60p for that ad block. If your website ranks better than theirs, you can probably get away with charging 90p per thousand visitors.

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