HOW MUCH SHOULD I CHARGE FOR PAY PER CLICK ADVERTISING WITH MY WEBSITE?

I customarily assign $100 a month -flat rate- on my website for advertising. I now have a customer which wants compensate per click. I have no complaint tracking the clicks- but I am not certain what a satisfactory rate is- or if there is a prevalent operation depending on your site’s travel cred.

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Tags: Advertising, Charge, Click, Much, Should, Website

This entry was posted on Friday, November 20th, 2009 at 6:37 pm and is filed under Internet Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “HOW MUCH SHOULD I CHARGE FOR PAY PER CLICK ADVERTISING WITH MY WEBSITE?”

  1. Oats Says:
    November 20th, 2009 at 6:52 pm

    To define how much should you charge for every click you have to answer two questions first:
    1. How much should you charge for 1 CPM (Cost per Thousand impressions)
    2. What is the average click-through ratio of your website (number of clicks / number of impressions)
    Usually the cost per CPM varies between $ 0.5 and $ 10. That has to do with how much targeted is the audience which is exposed to the advertising message. If your site has a specific visitors profile then you can select a price that is closer to $ 10 per CPM.
    The average click-through ratio is about 5%, of course this varies a lot and depends on many factors like the effectiveness of the advertising message, the banner attractiveness etc. Supposing that the average click-through ratio of your website is 5% then the charge per click should be between $ 0.01 to $ 0.2. Again if the visitors of your site constitute a specific target group then the $ 0.2 per click is just fine.

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