Re: UKNM: pricing

[Ray Taylor]

Dan Leighton <

danuk [dot] psi [dot] com

> asked:


 > Anybody got a rule of thumb for 'average' click through rate on ads per x

 > hits to a site?

 >

 > e.g for 100,000 hits on a site (assuming 5 pages per user at 10 hits per

 > page = 2000 user sessions (ish)

 >

 > how many click throughs for those 2000 users?

 >

 > stupid question I know but perhaps someone has a better idea of how to

 > calculate ad revenue?


The following is "typical" in the UK, not average, but bear in mind reality

is controlled by numerous uncontrollable variables.


100,000 pages impressions (or page views but, please, not "hits") at 5 pages

per user session would be 20,000 user sessions (easy to lose the 0 :-) )


A typical respectable click-rate is 1.0% (by impressions, in this instance

5.0% per user) for a consumer campaign, but a great offer presented with

sparkling creativity can of course produce a much better response. And

business-to-business is typically (not always) lower.


So your 100,000 page impressions, 20,000 user sessions, might produce 1,000

clicks.


Of course, the other variable here is cost. If you paid �35 CPM (per

thousand page views) for your campaign, then �3,500 is a lot to pay for your

1,000 clicks - �3.50 per click. But then if you buy at �5 CPM, your cost for

the campaign would be �500 and your cost per click would be 50p. There are

other values to be gained from the deal - brand exposition, etc.


If you are looking at building a revenue stream through advertising, please

take careful note of the following advice - reduce all your estimates by at

least 90% at each stage. Almost every development "funded by advertising" I

have looked out has chronically over-estimated the revenue potential from

banner advertising and underestimated the cost and difficulty of selling

impressions.


Unless you are in the media business, banner ad sales should be considered a

bonus against other revenue streams.


Ray Taylor

www.eyeconomy.com



~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

post new media vacancies for free

uknm-jobschinwag [dot] com

 				*******************

 sponsor the uk-netmarketing list and website, contact

saleschinwag [dot] com

 for more details.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

  To unsubscribe or change your list settings go to

http://www.chinwag.com/uk-netmarketing or

helpchinwag [dot] com