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Calculating Your Ad Rate: The Ultimate Guide

2014 February 10
by Contributor

ad rate calculationHow much should you charge ads on your blog? This is a difficult question because there is really no set price for charging ads on a business blog. But, like anything else, there are standards people have come to consider reasonable in this regard. If you don’t know what they are, read on.

Calculating The Right Price

The more visitors you have, the more you can charge

Think about the Super Bowl. One 30-second ad costs half a million dollars. Why? Because of the millions upon millions that will be watching the event.

That’s why the more visitors you have coming to your site – the more you can charge for your ad space.

Your keyword choices affect your price

If you have keywords that work better, you get to charge more. This just makes good sense.

If you research your keywords and the current ranking of your site, you will find out what works and what doesn’t. This can lead to more traffic and more specifically – targeted traffic. The better this whole system works at bringing in people – the more you can justify your price.

Reputation matters

What people think of your site and the level of activity are all important. As a general rule of thumb, if you have around 10,000 visitors to your site each month, you can charge up to $500 per ad! That’s good money! But first you have to prove yourself. So make sure you have a healthy Alexa rating and Google placement, and traffic that is fairly consistent before you try to charge this much.

Size matters

The size of the ads partially determines what you can charge. According to Google, the bigger the ad, the more people tend to click on it and the more revenue it generates for them on Google Ad Sense. Keeping this in mind, you can see why you should charge more if clients ask for a larger ad.

Consider your niche area

Certain niche areas are in higher demand than others. For example, children’s shoes are often searched for on Google, so if you are in that niche area, you may be able to charge more for an ad on your blog simply because it is more popular in the searches.

Apply basic economics (supply-demand)

Think about how much what you have to offer is in demand, as opposed to something that is rarely sought after. If you are in a business many people want, you can justify putting your price point higher.

The Formula

Yaro Starak published his formula for calculating the ad rate, which goes like this: Ad price = Daily Visitors count / 10. So if you have 200 visitors per day, you may charge $20 per banner ad.

However, as mentioned above, the price also depends on the size of the banner, the niche you’re in, the place on your site where the banner will be located, and so on. So, the formula should be taken merely as a guidance.

These are some basic guidelines you can go by when answering the price range question. But I am reminded of a line from the famous classic movie, “Jurassic Park,” when Jeff Goldblum said, “Yeah, but your scientists were so obsessed with whether or not they COULD, that they forgot to ask themselves if they SHOULD!

But, SHOULD you place ads on your blog?

This is also a question that must be asked. If you put ads on your blog, you will make money charging for the ads, in addition to whatever Google Adsense ads you already have in place. But the down side is that people may view your blog as a “money source” for you – which may cost you your credibility.

However, this does not mean you should not monetize your blog, or put ads on it. It just means you will have to work harder to show that you are about what you can do for people, more than the ad revenue you are generating, and prove this by continuing to provide the same original high-level content you have before.


Featured images:
  • License: Royalty Free or iStock¬†source: http://www.freedigitalphotos.net/images/Charts_and_Graphs_g197-3d_Illustration_Of_Business_Diagram_p31811.htm

78594By Ivana Zuber

Ivana Zuber is an Internet marketer, blogger, and full-time software developer. Besides writing for BloggLess, she enjoys spending time with her daughter and hanging around social media sites. Follow Ivana on @bloggless.

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