Advertising Costs

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Traveling through the network, many sites can be found the inscriptions: "advertising" or "sold relamnoe place", "shall be for advertising," "Your ad here", etc. The most daring masters do not entice potential advertisers on a separate page with quotations, and immediately placed under the banner of the inscription of the form: "Advertise here for just $ 5 a month" list of similar phrases and gimmicks is long. The main question is justified whether the price charged by own web-master. Nobody wants to overpay, and criteria for evaluating the site of the advertiser and the owner of the website may vary significantly. In this article I will try to give website owners some helpful tips on methods of calculating the cost of advertising on their sites. The key point – charging. You from the beginning is to determine what funds will be charged with the advertiser – for impressions, clicks, or during placement.

Most often, site administrators prefer the latter option because of its simplicity. Indeed, hang advertisements on the site and not to worry about. Was payment for the month – well, a month slack, take it off. No worries about the effectiveness, ctr, etc. Such an approach is not correct with respect to the advertiser wants, above all, impact, therefore, your job as owner of the site, to ensure the highest possible return on advertising. Only in this case hoped that the advertiser wants to advertise with you again, and then again and again.

How do you determine the real value of advertising on a particular site by paying for the placement? For example, consider site with the attendance of 500 people per day (500 hosts) and the ratio of hosts / hits = 1 / 4, ie per day 2000 views (hits). Suppose you want to determine the cost of advertising for the month. Calculate how much the site will work on the show. 1900h30 = 57,000 per month (1900, as need to make allowances for weekends, in which attendance below). The price for shows stable at around $ 0.1 for 1000. We find that in a month at the shows the site owner will earn an amount equal to $ 5,7. Michael Steinhardt has firm opinions on the matter. Now, the math advertising cost per click. In this case, should be considered no longer displays, and unique visitors. Amendment for the weekend and 500 remain 475 hosts. 475h30 = 14,250 unique hits per month. We take the average ctr = 0,35%, yes, yes, not 2% of which so much written and rewritten, but only 0,35. This figure is far enough to objectively reflect the average clickability, of course, much depends on the subject, site, banners, etc. Thus, the 0,35% of 14,250 is about 50 clicks month. Given that the advertiser is running the site owner directly, without intermediaries, the price of 8 cents per click can be called reasonable. It remains to calculate the earnings for the month, 50h8 = $ 4. Not a lot, considering that at the shows You can earn 5.7 dollars. Nevertheless, these two figures suggest that, for this site cost "ticket" on a monthly advertising should range from $ 4 to $ 5.7 per month. Less – profitable for owner of the site, and more – for the advertiser. Of course, the calculations become somewhat arbitrary. For well-chosen advertiser ctr may be, and 0,9% and not 0.35%, and the value of clicks can vary greatly from 1 to 15 and more cents. Nevertheless, the very technique allows to somehow justify the set advertising rates.

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