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I run a programming site and was contacted by a big product company. They want to publish 8 product posts about their product (they will write) in the next 6 months and purchase 5 million impressions of a 125x125 ad above fold. The product relates to the programming articles i write. I am not sure what to charge them per post and for the 125x125 ad. I do not run google ads.

Something about my site:
Visitors: 320K p.m with majority from US, Canada, Europe and India.
Regular content.
11K Rss readers.
Google PR: 5
Alexa - 30K

Can anyone help me how to go about this?

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3 Answers 3

Also, the location of visitors is important. Find out more about the company (which country is its main business based in). In general, US traffic can fetch more than Europe/Canada traffic which can pay slightly more than that from India - but all depends on the type and generality of ad.

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Are those 320k unique visitors per month, or are you taking the unique daily visitors and adding them together? Because if you're getting 320k unique visitors, then you could be making some serious advertising revenue.

Here's a survey of average CPM rates in 2009 for vertical advertising. I don't know if these are banner ads or textual ads, but they seem to range from $1-2 to $15-17. Luckily for you, for the tech industry, the average is around $15, which is at the high end.

CPM rates are calculated per thousand impressions. So 5 million page views would be $15 * 5000 = $75K. That's a nice chunk of change you have there if the advertiser is U.S.-based and has this sort of marketing budget.

That said, different publishers will be able to realize different CPM rates. I've seen people give $30-35 as sample CPM rates for banner ads, but most publishers probably won't be able to ask for that much. I would start at $15 and negotiate from there.

And if the advertiser doesn't think your ad space is worth that much, but you think it's worth more than what they're offering, you could propose a CPA/CPC deal where they pay per action/conversion. This way, there's zero risk to the advertiser, and you can ask for a higher rate than they're willing to offer for CPM. Alternatively, you could also use a PPC arrangement, which would be somewhere in between CPM and CPA.

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Lese's first point (whether its combined visits per month or unique visitors per month) is VERY important. Especially when you consider a single, individual advertiser. For an individual advertiser - the second and subsequent view is not as important as the first one. (An ad network can rotate ads - but even there, the first page view by a user is more important than subsequent ones - in general). –  JP19 Dec 24 '10 at 3:45
    
I was going to suggest looking at in a CPM light, but Lese covered the topic better than I could have. +1 –  Melanie Apr 26 '11 at 7:43
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DZON, Interesting Question! As art director we think about the prices/performance/value/ client relationships all the time. Now to the point of YOUR website:

  • SHOULD there be a standardized Chart for this? (NO)
  • IS your website a standardized webiste? (NO)
  • Are 320K visitors same as 320K visitors (OF course not, unless one is really stupid)
  • Professional analysis shows that unless you know what type of people those 320K / other numbgers actually mean, its impossible to get to know what they are really worth. If the client is stupid and thinks that those 320K are all potential buyers of his products, you can ask anything you want. On the other hand perhaps the potential for this client is small, not making any branding/product sales from your site, meanwhile you are stuck with all the ads on your site!

Lets stop for a moment and ask yourself the seemingly subjective question: what do YOU think that space / your visitors are worth to you, risking placement of distractions that might annoy them or could it perhaps even enrich them? etc

It can be nice to have ads but too much of it and it could cost you more(visitors) than the money paid buy the ads, in a long term.

Welcome to the world of highly specific, audience targeted customized ads sales. And the best person knowing that targeted audience, is you.

Summary:
You must name YOUR price. You have the meaning behind those numbers.

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