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Website Monetization: Selling Banner Advertising |
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Written by Teenum Chudha
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Wednesday, 14 January 2009 |
 There are many opportunities to monetize websites with selling banner advertising being a particularly lucrative option for sites that have a large enough and steady stream of traffic. In order to maximise the potential of this additional revenue stream an awareness of the market is required as well as an understanding of the website's visitors.
Prior to selling banner ads, the type of traffic visiting to the site needs to be established.
- What countries visitors are coming from?
- What product or service is attracting them?
- How are visitors finding your site?
- What organic search terms are bringing them to your site?
- What advertising campaigns are attracting them to your site?
From this you can determine who would benefit from advertising to the audience your site attracts. Bear in mind when looking for a business to sell banner ad to, they should ideally provide a related product or service to the incentive attracting the bulk of your traffic, but not be in direct competition to you in any way.
The next step is to determine how much you should sell you banner ads for. The amount of traffic your site receives is invariably the most important constituent, but it is a figure that will differ. Some sites may attract traffic for a large umbrella market such as finance or travel and may have over 500,000 impressions per month. In comparison, other sites may have far fewer impressions as they cater for a specialised niche and have fewer visitors. These sites can still be valuable to advertisers if it attracts highly targeted traffic exclusively for that niche. Other factors that influence the price of banner ads include competitors' rates, banner size and placement, demand and visitor profile.
There are different levels of selling banner ads:
Cost per 1000 (CPM)
Also known as pay-per-impression, payment is set for every 1000 times the advert is displayed (page impressions). Payout relies on the number of visitors the site receives every month. Earnings with CPM is relatively low but with a higher guarantee of a payout.
Pay-per-click (CPC)
The total payout increments each time a visitor clicks on an advert. The rate per click is higher than the rate per impression, but the click through rate may be low. Ad relevancy and placement are aspects that can affect the click through rate.
Pay-per-action (CPA, CPL, CPS)
This has a much higher payout than the former two options, but you only get paid if a user clicks through and then goes on to perform a particular action. These actions often include the user signing up to a service or buying a product from the advertised site.
Pay-for-space
Clients pay for website real estate based on a time period, for example, a banner placed on home page for 1 year at a set cost. While this is offers a guaranteed sum of money, agencies take into consideration traffic and page rank of site offering the real-estate and is relatively competitive for a high payout.
If you need banners designed or need advice on how to sell banner space, please do not hesitate to contact us.
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