Payment options
There are three payment methods for banners.
1. Fixed Rates: Usually the small publishers charges fixed rates
such as $ 100 per year for a banner for displaying for one year or $ 30
per quarter.
2. Big and popular sites that enjoy huge traffic usually charge CPM.
Cost
Per 1000 views (M is the Latin for 1000). The publisher is paid for
displaying the banner and the rate is based on 1000 page views.
3. CPC. Cost Per Click. The publisher is paid if someone clicks
on the banner and is transferred to the site of the advertiser.
Third party robots keep a count on hiring their services for tracking
CPM, CPC or CTR but such services are not used by small publishers. (CTR
or ‘Click Through Rate’ is the percentage of visitors that click on the
banner.
Advertising Networks
A publisher may to sell his advertising space. But unless your site
has a traffic of over 50, 000 page views per month, you are not likely
to get any ad. And if any network places ad you may not be paid anything
at all for not fulfilling the conditions of CTR or CPM. Smaller agencies
or networks will keep a substantial part of your advertising money as they'll
find much more advertisers than you could find yourself.
Typical Rates
Review Center is a site in UK, which says that currently it displays
around 12 million pages a month to well over a million unique users. User
demographics/profiles are available on request. Here is an extract from
their tariff.
“Pay per thousand (CPM)
Banners are purchased in advance with third party tracking facilities
as follows:
http://www.reviewcentre.com/advertising.php
Review Center Advertising Options
top banner 468x60
1. 100,000 banner displays - £950
2. 200,000 banner displays - £1800
3. 500,000 banner displays - £3600
5. 1,000,000 banner displays - £6000
6. 2,000,000 banner displays - £9500
side banner 120x60 =above prices * 0.4
bottom banner 468x60 =above prices * 0.75
(Normally that averages to 25 paisa to RS. 1 per page view)
Pay per Click (CPC)
Review Centre sponsored matches appear at the top of our Search
results and are provided by Espotting Media, our pay-per-click partner.
Espotting's search results are determined by advertisers bidding
on keywords that are relevant to their business - in an online, real-time
auction. The higher you bid, the higher you are listed. It's traffic you
control because you set the price and you only ever pay for the traffic
delivered, all in an open marketplace.
There are two components when registering for an Espotting account.
The initial registration fee is dependent upon the level of service you
require, whether Gold, Silver, or Bronze.
The second is your ongoing cost-per-click investment. This will depend
on the number of keywords you bid on, the rank of individual keywords,
as well as the vertical advertising sector your business is in. For example,
the cost-per-click for 'loans' will be far greater than it will be for
'lingerie'. “
The advertisement tariffs of such leading sites as yahoo, msn,
google, aol etc are voluminous and show rates for different pages and locations
and spots for different periods and under different condition. For instance
for displaying a small button on the home page of yahoo one pays over $
50, 000 just for two weeks’ display to millions of surfers. That for a
whole year may cost well be over $ One Million. Ofcourse for other pages
the charges would not be so high.
A long-lasting debate in the Internet advertising industry on
the most appropriate pricing model for Internet advertising: CPM or CPC.
In the CPM model, an advertiser pays for impressions. All an impression
means is that a visitor has been given an opportunity-to-see an advertisement.
This approach is closer to the traditional magazine advertising. While
in the CPC model, the publisher is paid only for click-throughs (when a
visitor clicks on an advertisement). The industry has been divided into
two camps: the branding camp advocates the CPM model, whereas the performance-based
camp advocates the CPC model.
The branding camp argument has been that the impact of advertising
on measures such as brand awareness, brand recall, purchase intent is immeasurable
with clicks. Therefore, the number of click-throughs should not be used
for compensation. The counter argument has been that the number of click-throughs
represents the number of visitors who are so involved with the advertisement
that they clicked on it. Hence, it is an informative performance metric.
Despite the importance of the problem and recent interest in IS research
on measuring business activity on the Web, little is known about the determinants
of the choice of a particular model and no formal modeling has been done.
CTR on the decline
As the number of web site is growing at galloping rates and new software
and program have been developed to invade the privacy of the surfers by
spy ware and pop up ads, CTR is on decline. On many sites it may be as
low as about 0.5% or even less whereas a few years ago it used to be around
1% on many sites. Now Real banner-haters buy software to get rid of banners.
Solo Ad by Email
The hay days of email advertising are gone as this facility is thoroughly
abused by unethical marketers. Effective ways to block such junk mail have
been developed. Even in case of opt in email lists 90% people delete email
without opening it. However, in opt in email lists of good discussion groups
and newsletter now the short email ads of 3 lines or so gets good response
if they are published along with other contents of the interest of the
readers Thus good ezines devote hardly 25% space to advertising.
The strategy for using the Internet for marketing and advertising has
to be drawn with great care after evaluating different sites and the demographic
data.
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