Selling Ad Space

Selling advertising space is difficult to do when you are just starting to build your website.

To sell advertising space, you need to have a strong history of site traffic. When you first launch your site, there obviously won’t be enough traffic to sell ad space, but you can plan for future sales and reserve spots for ads.

If you are planning to sell ad space, it is important for you to make plans in your web design process for allotting space for future advertisements.

After you have established traffic and are ready for sales, there are a few different options that you should consider. Do you want to sell banner ads on the top of your web pages, or do you want to stick with text links? Banner ads are the animated banners you see on websites. These can be distracting, but you can charge more for them. Text links are simply a link from your website to the advertiser’s website.

 

DETERMINING PRICE
You can determine the pricing for advertising space on your website a few different ways. You could choose to charge a flat rate, meaning you’re going to charge someone $175 per month, regardless of the results (or how often it’s displayed or clicked on).

Another method may be to charge by CPM, or cost per 1,000 impressions. Pricing this way is determined by the number of times the advertiser’s banner is displayed on your website. This type of pricing is usually reserved for websites that receive thousands of hits per day.

Another popular method is CPC, or cost per click, which is the method Google AdWords uses to charge advertisers. Advertisers pay only when a site visitor clicks on their ad on your website. For example, if you charge $0.25 per click, and the banner is displayed 5,000 times a day, but it’s only clicked on 25 times, the customer would owe you $6.25.

The important thing to remember in pursuing paid advertising revenue is to make sure you plan for it ahead of time so your web designer can plan for the potential addition to your website.

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