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If I had a website and wanted to start selling advertisements on my site, how would I measure / calculate the price I should charge?

I could go with Cost per 1000 Impressions, but then there could be people that keep on refreshing.

Or I could go with Cost per Click, but then there could be people that just click on an ad to click on it.

[EDIT] I found another question, I'd like to ask should I worry about unique impressions/clicks if I look at the CTR (Click Through Rate) ?

So neither of these seem like they would work out good for both me and the advertiser. What would you suggest I should do. Do I use a combination of both of them, or would that be worse?,

Please if you have any ideas let me know, Thanks.

asked Jan 14 '13 at 02:01

MattBrotz's gravatar image


edited Jan 14 '13 at 02:44

Most people tend to use services where others do the pricing for them (eg the google ads)

other than that, directly selling ad space will often require a very high traffic site, and then you will need a way to track the ad click through and views and overall effect (keep in mind that even networks such as twit.tv are unable to do this (not because they cant, but because it is too much work to track everything, instead they use other services that will allow them to simply copy and paste some HTML and then the ad network has a little div that they can edit.

If you are producing an online tv show then it is easier as you can give coupon codes (eg how some groups will say something like, use code FTL to save 15% on your order)

That method of tracking looks for how well the ad is doing as they don't care how many are watching the ad, they are interested in how many sales they have gained from buying ad space.

Also keep in mind that if the success of your site is borderline due to competition, and you put up ads, then you will lose many users. Things like banner ads automatically come off as unsafe and scammish. Keep in mind that 99% of what your e-mail spam filter blocks, is also what you will commonly see on various banner ads. (malicious ad makers have essentially poisoned the well)

answered Jan 14 '13 at 04:44

Razor512's gravatar image


edited Jan 14 '13 at 08:50

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Asked: Jan 14 '13 at 02:01

Seen: 678 times

Last updated: Jan 14 '13 at 08:50