All About Banners – How to Assess the Value of Online Ads

How to estimate the value of banners

The world is ruled by advertising. It’s about time you start using it too. Insert banners in your website and start earning money. In our series “All About Banners” we will gradually reveal the secrets of the huge world of online advertising and how to become rich by applying them. Learn how to estimate the price of banners. Read on!

Cost Per 1000 Impressions

The CPT meter is an important concept (cost per thousand), alternately CPM (cost per mille), which is the price you set for a thousand displays of the ad. Let’s assume that you put your banner on every page, right below the header. When the visitor enters any of the pages they will immediately see the advertisement. With CPT equaling 4$ and 10.000 displays per month you will earn 40$ monthly.

If you want to check the total number of monthly views of your pages, go to your statistics and check the column “Pages” .

How to Calculate the CPT?

There is no table that can help you determine the price, but there are three different indicators that will help you with the estimation:

1) How much the competition charges for an ad

Browse through websites with the same or similar topic as you, and see their advertising rates. Follow their example. But be careful! If you are new to this and you want to be competitive, you need to offer better terms than your competitors!

2) Value of an ad for a customer

Think about how many customers the advertisement could bring, how profitable it could be, and what is the income of that for the ad owner. Let’s say you have an ad for a music festival on your blog. Tickets for this festival cost $40. Your website has 30,000 impressions (displays of the webpage with the banner) per month. You have to count with the fact that no more than 0,1% of all the visitors will click on your ad, and only 10% of them will probably buy the ticket. So, thanks to you, the festival will get 3 sold tickets. Therefore, you cannot expect more than $120 from the festival.

Of course, not all banners are relevant to your website. For example, a biking shop’s ad fits more in a blog about cycling than in a blog about cars. Think twice before you decide to contact a company.

3) Value of an ad for me

Naturally you won’t do something that will not pay off for you. On the other hand, you cannot expect enormous income in the very beginning. When you set the price too high, no one will give you the banner. Therefore, don’t be afraid to lower the price a little bit. When your website will become more popular, you can raise the price of a banner.

In the beginning, remember to do proper research and try everything out. Get to know your competitors, potential customers, but also your own website. If you don’t have any experience with banners, create your first ad with Google AdSense. With the help of Google Analytics you will be able to see your visitors’ behavior. Make a small experiment and try different types of banners on your website. Which ads are clicked on most often?

In the next chapter we will show you the types of banners and the types of ads that should be avoided. Stay tuned!

Try to guess: How much do you think you could get, if you put a banner on your website right now? Wondering how to monetize your own website? We have a detailed guide for you.