How Much Should I Pay?


This is a loaded question, as it depends on what you are advertising and where. The important thing to know is how to compare the prices of different places. You do this by working out the eCPM of what you are buying. eCPM stands for “effective Cost Per Thousand impressions” and is used to turn other pricing models into a CPM so they can be directly compared. The goal is to know how much you are paying to have your ad shown 1,000 times (and therefore on average, have one person click on it). You do this simply by using this formula:

 

eCPM Formula or EquationClick to enlarge

eCPM = (Ad Spend x 1000) / Ad impressions

 

For B2B sites (as in for companies which only exist to provide services to other companies) you could expect to be charged £10+ eCPM as the audience you will be hitting will be your core audience, and there will most likely not be many people like them around. For all other sites, you can pay anywhere between £0.30 – £10 CPM depending on who you are buying ad space from.

A rule of thumb is that the more you pay, the better ad space you will get, however you will of course be told that the ad space you are buying is the best wherever you go. Therefore negotiating the price down is always your best bet – you should be able in all cases to get the price to somewhere between £3-£8 eCPM depending on the quality of the ad space and the complexity of the ad campaign you want to run. Remember to always judge your ads solely on performance (and not any nonsense the salesperson spews at you) and you will be able to find the most effective place for your advertisement.

Follow the links below for some of the other most important things to take into account when deciding whether an ad placement is worth it or not.

 

Find out more

Test Budgets/Campaigns

Rate Cards Are Never Adhered To

 

Next: Judging My Campaign