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  1. #1
    Newbie
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    January 17th, 2005
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    What's Your Take?
    Come September we are launching a new directory site. It will have 12 pages of category specific text listing and show ONE leaderboard ad and ONE standard banner with every page view.

    Traffic will come from ALL sources with the majority from affiliates and RON from search engines and purchased traffic sources. We will guarantee 100K real people will see each category page each month. We anticipate each page WILL get between 500K and 1 Million visitors per month.

    Now we know what it will cost for a listing ... these will be sold by our affiliates and they will make 55% commission.

    However, we need to set the banner pricing. It will be CPM. As of right now we have locked in an ad agency for one of the banner slots for $4/CPM for
    US traffic and $2/CPM International ... We just spin their clients banners in their rotator.

    The question is what would you as a merchant be willing to spend CPM for
    a standard banner above the fold on a category specific, keyword based page plugged into a banner rotator. Yours or ours, doesn't matter.

    Of course the usual suspects opinion do not count. We are not looking for merchants and outsourced AM who want their clients to get some branding
    with the limited competition.

    What do you think is a FAIR price? 50% or more of the traffic will be USA based. Obviously less than $2 is not going to cut it ... but to get that will take a pretty substantial buy. What we want to know, is what would be the fair price and minimum impressions to test if the ROI is worth it?

  2. #2
    ABW Ambassador Joshua's Avatar
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    August 17th, 2006
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    854
    What exactly is the theme of the directory site? It's possible to get decently targeted banner inventory for under $3 CPM, that can back out to a decent CPA on the back end of offers I've tried media buying for. For a general RON untargeted ad though, I wouldn't count on that kind of CPMs.

    My true suggestion would be to run AdSense text ads first, then AdSense text/image ads, and see what kinds of eCPMs you can pull there. Adsense's beauty is that the targeting can be very effective - both from the publisher's end, and the advertiser's end. My experience is that on mainly text based sites (especially directory/text content sites/new sites), Adsense text blocks outperform banner ads, but banner ads on content sites (targeted to content + color schemes) where more images and color is found.

    Good luck with the project, and let us know how it goes. It's a quite ambitious project.

  3. #3
    Newbie
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    January 17th, 2005
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    Here's an example: One of the category specific pages will be 'business to business.'

    There will be four text listings that will rotate with each visitor so we can have an unlimited number of listings. These will have a set fee per month. On any view, the visitor will see four listings and one or two banners.

    I am not a big fan of goofle ... and I know Adsense would work ... but I like to get paid and goofle is notorious for slapping you for no know reason ... so I can't afford
    the risk on the come ... it costs money to get that kind of traffic.

    You can have all the eyeballs you want for $3/CPM ... but there will be no back out to CPA . As for targetting ... obviously RON is not overly targetted ... but since each category page will be linked to all the others, as people visit one category, all their second clicks to other pages will be 'fully targetted.'

    The idea is to make a one cent profit on each unique visitor ... then let the scale kick it to higher levels. 1,300 affiliates should bring in quite a few eyeballs everyday - average 10 per affiliate and the game is on.

    And I am talking to a network with over 100,000 affiliates as a JV partner.

    Not to be a hard case, but I am not in the charity business ... I don't have to do anything since, I am not beholding to Wall Street. If I make $1/day per page, I can stay alive - and that is not hard to do.

  4. #4
    ABW Ambassador Joshua's Avatar
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    August 17th, 2006
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    Quote Originally Posted by net4biz
    I am not a big fan of goofle ... and I know Adsense would work ... but I like to get paid and goofle is notorious for slapping you for no know reason ... so I can't afford
    the risk on the come ... it costs money to get that kind of traffic.
    Google slaps advertisers on AdWords, not publishers on AdSense. Don't underestimate the value of AdSense, especially when just starting out, and also since it cut out initial leg work on getting advertisers, while also trying to get the site up.

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