Question

Topic: Advertising/PR

Internet Advertising How Much To Charge?

Posted by Anonymous on 7/18/2006 at 8:53 PM ET 1000 Points
We're launching a social networking website aimed at a particular group. We want to sell advertising sponsorships to selected non profits or other groups that will want to get their message out to our members.

Our issue is How much do we charge the sponsor? We think we offer great value by targeting the message to a specific audience that the sponsor wants to reach. More effective than a billboard or amagazine ad.

Any input on internet advertising rates or other rates paid for advertising would be helpful. Any suggested reference sources? Thank You
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RESPONSES

  • Posted by NatashaChernavska on 7/18/2006 at 9:45 PM Accepted
    Hello, everyone and personally Leofam!

    I missed all of you, getting back to you after moving to Florida... But, enough about me.

    Well, technically the price of advertising at your website is relatively easy to calculate. But first let me tell you something. It absolutely does not matter how you evaluate your vebsite as an advertising platform. If you're only lauching your site, I hazard a guess that you have to promote it first just to make sure that the goup you are aimed at does really visit your website. After completing marketing surveys of your actual visitors (which you will be able to do properly after several months of actual and active life of your newly created web-project using for example daily polls) you will get a foretaste of your users profile types. Only after you conduct this research you may start offering paid advertising based on what your visitors want to read or what kind of advertising they want to accept.

    I am sorry to say that, but before you even launch the project you can't offer any serious advertising. At this point all advertising you can offer without disinforming your sponsors are free kinds of ads plus, may be, some paid campaigns which will be supported by agressive promotion of your own website on the net.

    I don't want to disappoint you, but you may offer $50 per 50 clicks from your site to the sponsor's one, But I assure you, untill your site starts generating thousands visits per day, it's a fantasy that you will earn your 50 bucks within even months.

    Just go ahead, promote yourself, do everything to appear in the first ten search results in Yahoo and Google, get to the point of at least couple hundreds visitors per day - and then sell yourself.

    And I wish you good luck with that!

    PS. Don't forget about keywords and polls
  • Posted by MANSING on 7/19/2006 at 5:46 AM Accepted
    Hi Leofam,

    As you going to launch Social networking website and you would like to contribute your service by sponsoring selected Non Profit/other groups, you need to be very careful about the investment. Not all Non Profit organisations are interested to use web advertisement. First of all we start with the basic theory which will give you knowledge what we can give? How can we give? How much we can charge them?

    Let me tell you there are two sides to online advertising, a legitimate one and an illegitimate one. The legitimate side of online advertising includes search engine advertising, advertising networks and opt-in e-mail advertising. The illegitimate side is dominated by spamming.

    Leofam, you are still gettign into new business and mostly the range of advertising options has expanded into rich media and static images. You need need to find how many customers you will get it. In any economy the price of product is depend on the demand and suppy. There are following ways you can calculate your rate:

    • Industry calculations: Click Through Rate(CTR), Cost Per Action(CPA), effective Cost Per Action(eCPA), Cost Per Click(CPC), Cost Per Impression(CPI), Cost Per Mille(CPM), effective Cost Per Mille(eCPM)

    • Web advertising: Web banner, Ad filtering, central ad server, pay per click, Pop-up ad, click fraud, Affiliate marketing

    • E-Mail advertising: e-mail spam, opt-in e-mail advertising, Spamming

    • Search Engines: Search Engine Marketing (SEM), Search Engine Optimization (SEO)

    As I am not aware about the pixel size you going to offer for the advertisement. Try to contact with the advertising agency and get more information about the pricing. I have suggested some websites for the internet charges. Could you please go through this website and look for the more information.

    I hope this will help!

    Regards,

    M Bhor

    Website:

    1. https://www.armenian.com/priceinternet.html
    2.https://en.wikipedia.org/wiki/Category:Internet_advertising_and_promotion
    3. https://www.totalcatholic.com/downloads/totalcatholic_ad_pack.pdf
    4. https://www.onlinewales.co.uk/banner_ads.cfm
    5. https://www.nacorp.com/NAC2/adv/online/rates.asp
  • Posted on 7/19/2006 at 9:00 AM Author
    Some great input. Thank you to all. In our model we were hoping to price the sponsorship based on a flat price for a time period rather than clicks. We expected to take on only a limited number of sponsors (say 5-6) per time period.

    We're confident that we'll get initial sign-ups in the 35,000-50,000 range with goals of a 7 figure membership over time.

    These sponsors will be able to post "content" (blogs,articles,etc) to deliver their message rather than just a click ad.We will also provide reports to the sponsor on the reach of the sponsors message(how many members read the posting,age,where are they located,their interests,etc). Any further thoughts on what to charge the sponsors? Any more insight on the "auction"comment?Thanks again for the input.
  • Posted by darcy.moen on 7/19/2006 at 9:18 AM Member
    I trust that you'll be able to back up your confidence with server stats. You'll need all kinds of stats to show potential advertisers what your site is doing. Half the sell in this case is going to be performance of your web site. It will have to generate hundreds of thousands of hits to offer any real value to advertisers.

    Darcy Moen
    Customer Loyalty Network
  • Posted by Deremiah *CPE on 7/19/2006 at 11:21 AM Accepted
    Hi leofam,

    there are many ways to slice this. One is the level of your exposure in volume as Darcy has suggested but one equally as important is the quality of your viewing audience. If you have a viewing audience that consist of heavy hitters in the industry that would bring much more value than even hits. Smaller number than larger number volume but having real movers and shakers makes equally an appealing interest to those buying advertising space. It's the funnel approach versus the concentrated approach...shotgun (buckshot) approach versus the 357 Magnum (narrower) approach.

    In any case this will also determine what you will charge for advertisement. Newspapers get broader (buckshot) opportunities but it's less expensive advertising than a trade magazine that get's narrower more pinpointed specific viewers. You have to weigh all of this and even consider the medium at the same time. Do you know much about your viewers who visit your website? Knowing more about them will also determine the value of your advertising dollars. Their is much to think about in this simple question and so many things to consider. Please research this out more to identify how others do it. Remember our only real problem in life is our failure to be "MORE Creative" than we’ve ever been. If you “Invent” your opportunity YOU WILL most definitely create your future. Just know that I'm here for you if you need my help. Is there anything else I can do for you?

    Your Servant, Deremiah, *CPE (Customer Passion Evangelist)
  • Posted on 7/19/2006 at 7:34 PM Member
    FIRST, VISITORS:
    I don't understand who will go to your site? Who will become a member? Who will want to become a member?
    SECOND Advertisers:
    Non profit groups are mostly around to launder money (not all the time). Then there are the religious non profit groups, they have an agenda at the end of the day, most times? What is the demographic of your target audience, because I am completely confused on what type of viewers will be coming to your site?

    If I am a fundamental Christian and constant visitor to your site, and a non profit gay and lesbian group pop up, I might become mad and stop supporting your site. (Example)

    *I am not fundamental, and gays and lesbians are cool, except Rosie:)
    Sorry if I am totally off topic.
    Roberto
  • Posted on 7/20/2006 at 2:14 AM Member
    Why don't you treat it as a marketing interface. Create a payment gateway and charge a certain percentage. For e.g. every $100 earned could get you $5 to $10. This way the NGO might see value and not question the efficacy of the medium.
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