Decent CPM rate?

M

maverick007

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Dec 26, 2008
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So, I'm getting started by trying to make private banner deals with web site owners. I just got a reply back from a site owner who wants $150 for 10,000 impression per month for a 728x90 banner. Which is basically $15 ecpm. The offer I'd be pushing pays out $35.

Below are my number estimations. I'm estimating .5%, my AM claims the offer has a 10% conversion rate.


Ad Cost $150.00 Impressions 10,000 CTR 0.500% Clicks 50 eCPC $3.0000 eCPM $15.0000

Payout $35.00 B/E Units 4.29 B/E Conv Rate 8.57%

Proj Conv Rate 10.00% Units 5.00

Revenue $175.00 Ad Spend $150.00 Gross Profit $25.00 ROI 16.67%
Doesn't even seem worth it to me? Thoughts?

Thanks!
 


I personally wouldn't.

I always figure the alleged conversion rates given by the networks are a bit higher than in reality.

Plus, unless the site you're dealing with is ULTRA-targeted towards your niche product... seems like a waste to me.
 
maverick007 said:
So, I'm getting started by trying to make private banner deals with web site owners. I just got a reply back from a site owner who wants $150 for 10,000 impression per month for a 728x90 banner. Which is basically $15 ecpm. The offer I'd be pushing pays out $35.

Below are my number estimations. I'm estimating .5%, my AM claims the offer has a 10% conversion rate.


Ad Cost $150.00 Impressions 10,000 CTR 0.500% Clicks 50 eCPC $3.0000 eCPM $15.0000

Payout $35.00 B/E Units 4.29 B/E Conv Rate 8.57%

Proj Conv Rate 10.00% Units 5.00

Revenue $175.00 Ad Spend $150.00 Gross Profit $25.00 ROI 16.67%
Doesn't even seem worth it to me? Thoughts?

Thanks!
Click to expand...

Generally speaking, I think your CTR is too high for a banner and your conversion rates will be lower than search clicks for sure...
 
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