Question

Topic: E-Marketing

Online Cpm Rules Of Thumb

Posted by Anonymous on 3/10/2006 at 3:06 PM ET 250 Points
I am working on a website that is basically a content/publishing play. I want to understand some of the industry standard revenues I can model. Such as:

How much can we expect per click from AdWord advertising?

How big does our audience have to be to attract interest from display advertisers?

What are the standard CPMs for display ads? What is the standard CPC we can expect to be able to charge on click thrus?

In magazine publishing, most everyone figures it takes about three years to build up a loyal subcriber base of 75,000 or so, at which point one becomes profitable. Is there a similar rule of thumb for online content plays?

Finally, is there a standard value attributed to a subscriber online? The value used in cable television for a sub is two years of average subscription rates. Is there a similar metric for online subscribers?

I know there are lots of exceptions and so on, but it would really help in the planning process to learn from what must be a known science by now in the Internet world.


Thank you.
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RESPONSES

  • Posted on 3/13/2006 at 6:58 PM Accepted
    I agree that the .10 to .30 mark is low for CPM . . . Depending on creative size, you can typically do well on network graphical advertising sites for between $1.00 - $3.00 CPM.

    I would stick to a 300x250 size as they usually get good placement on most sites. Here are some good places to advertise in channels you select:

    www.fastclick.com
    www.tribalfusion.com

    MAKE SURE that you have them place their pixels that optimize your campaign by conversions . . . Our campaign conversions increased exponentially once we implemented the auto-optimization features.

    If you have a good analytics program like HBX Analytics by Web Side Story, you can actually dial into what specific urls on those networks are driving leads and conversions . . . they freak when you call them back and ask to optimize specific sites, but you're the money person for them.

    Good luck . . . and keep those publishers honest.

    Mike
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