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Thread: Determine value

  1. #1
    waynelong is offline Unknown Net Builder
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    Determine value

    What is the best way to determine value of local ad placement on your site? I am talking specifically about selling ads to local companies like car dealers or restaurants to display ads on my site. How do I determine a value? Are there industry standards to follow?

    Note: I do have real estate sites but those are not the ones I am interested in monetizing.

  2. #2
    Will.Spencer's Avatar
    Will.Spencer is offline Retired
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    This is a killer question. Rates are set by the market. Price is determined only by what the buyer is willing to pay, nothing else. So, a lot will be determined by your salesmanship.

    But I have a bit of a trick that might be useful to you. Place an AdSense ad into the spot where you intend to sell ads directly. Create an ad channel just for that ad. That will give you CPM and earnings numbers to start with.

    From there, I would bump the numbers by about 50% to adjust for the portion of revenue which you are no longer sharing with Google AdWords.

    After you have been selling ads to your target customers for awhile, you will know how to adjust pricing. It's only the getting started part which is really hard.
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    bogart is offline Super Moderator
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    Quote Originally Posted by Will.Spencer View Post
    From there, I would bump the numbers by about 50% to adjust for the portion of revenue which you are no longer sharing with Google AdWords.
    I believe that the portion of revenue that Google pays the publishers is less than 50%

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