What is the best way to determine the amount to charge advertisers per click/impressions?

I have created a web application where I am considering selling advertising. We have a very niche group of users (CrossFit) and I don't know how to determine the amount to charge advertisers. What is is the best way I should go about determining this?


You really don't need to do that. Most people use an "ad-exchange". See this

I've used RightMedia in the past (now part of Yahoo).

Answered 7 years ago

[Source: I founded isocket - we power direct ad sales for the web's best publishers like Microsoft, Aol, etc.]

If your application is new and the traffic still modest, you should focus first and foremost on building your audience before worrying too much about ad monetization. And the typical first step is to throw an ad network on, which will take care of the pricing economics for you behind the scenes.

If you're ready to do direct ad sales, then some good starting rules of thumb for a smaller site are:
* $1-3 CPM.
* Double what you were making eCPM from networks like AdSense.
* Ask a potential advertiser.

We always encourage new publishers to start off with a price low enough that, given your audience, you are super confident you could spend an hour calling potential advertisers and at that low price SOMEONE would take it. Start there, repeat, move upward.

Answered 7 years ago

Make it auction-based just like Google AdWords, Facebook Ads and LinkedIn Ads.

Answered 7 years ago

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