Online advertising rates are set through a combination of ad size, ad location, ad performance and market demand. Optimizing this key ad sales tactic results in higher revenue, increased advertiser acquisition and increased advertiser retention, which in turn influence the price on the online rate card.
The size of the ad is a major factor in Website advertising rates because of the amount of space each one takes up on a page. Based strictly on space alone, the 160 x 600 skyscraper should command the highest premium on the rate card, followed by the 300 x 250 and then the 728 x 90.
Therefore, the ad might command a premium on price in the most targeted section and a discount in other sections of a site.
A publisher will find that setting a rate card at a level low enough to sell out the bulk of the inventory will increase retention for advertisers and drive up rates in the long run. Content sites will find that a careful balancing of the above four factors will drive higher sellout rates and advertising market share. A client might pay a fix rated for every 1,000 impressions, but that same client may or may not have a guarantee on the number of impressions. It may seem obvious that clients are guaranteed them, but whether or not to do so creates an opportunity in sales. The simplest and most well-known example of non-guaranteed impressions is the use of remnant advertising networks such as Google AdSense, which allows a site to generate revenue from unsold inventory. A good sales team should try to sell some of that inventory on their own as non-guaranteed impressions at a rate somewhere between what they get from national remnant networks and what they get from guaranteed impressions on the rate card.
The client then pays a variable amount each month based on the number of impressions delivered. A recent rate card for AdWeek (2013) shows run of site rates of $65 and targeted rates for the home page and sections at $100.
But it’s worth noting that CPM and CPC rates are declining over time as the total number of Web sites and pages is increasing faster than the amount of online advertising.
One answer to that problem: Drive up ad inventory volume by increasing site audience, unique visitors, visits and page views. The average CPM rate for a page is an effective tool for an online business to measure how efficiently a Web site is performing for both revenue and audience. Anyone who uses Google AdSense to generate extra site revenue will recognize this metric in their account reports. Example A — Assume a medium-sized site has $5,000 in revenue and 500,000 page views in a month. This rate card for a travel publication shows high CPMs because of its targeted audience with high income demographics. I did two studies for clients that revealed average page CPMs of about $12 for a group of small, underdeveloped sites and CPMs ranging from $30 to $40 for another group of large and advanced sites that also had multiple revenue-generating products such as classifieds, directories, mobile and video.
A $12 CPM is too low for the underdeveloped sites to make a profit, while the larger sites have CPMs more in line with their true potential. Some major national sites I analyzed have a page CPM of nearly $100, but they also have high marketing and production costs and targeting of high-value audiences.
Although there is no perfect number, page CPM is a useful metric in striking a balance between revenue and audience performance. If average CPMs are declining, one way to make up the difference is by increasing volume of impressions, usually by taking audience market share away from other sites in an environment where online audience growth rates are slowing. An advertiser who uses Google AdWords, Facebook, Bing or other major advertising sites will instead likely pay based on a cost per click or CPC.

A CPC rate card is fair to an advertiser based strictly on response rates, but it is unfair to the publisher if a great deal of inventory is used for a poor ad that generates no response. It becomes even more unpredictable based on the category — auto, real estate and employment have a high CPC for advertisers because of intense competition for inventory and because a $4 CPC for real estate could result in a $20,000 commission for a Realtor and broker.
So a CPM campaign should be judged based on impressions with an emphasis on branding and response. In fact, some buyers of search engine advertising are finding that when CPC is calculated on a CPM basis, the rate is closer to $2 to $3. Lots of interesting data here, but it is unclear when this was written…other than January 18. The rate cards and studies are a bit worn, but I’m surprised at the number of sites that are still trying to charge above a $10 cpm. Just wanted to know if one has to charge for static ads independent of CPM then what should be the monthly charge n general?
A flat rate for a static ad doesn’t have to be exactly based on the page views or keep changing as page views drift up or down over a few weeks or a few months. You don’t want to charge too little and end up with a 50 cent CPM (this actually happened to one site) or too much, which results in an unhappy customers who overpays for results. ALL ADS in Locus will be priced at black & white prices for the May, June, and July issues. LOCUS is a monthly trade journal, founded in 1968, whose readership consists of chain and independent book buyers, librarians, publishers, bookstore owners and managers, and other science fiction professionals, as well as dedicated SF readers. LOCUS is famous for its book reviews and author interviews, recommended titles lists and analysis of the SF field, monthly bestseller lists, monthly listings of all SF books published, and its up-to-date coverage of newsworthy events. Thanks to the annual LOCUS survey, we can give you a fairly complete picture of our average reader. Wrap-around covers for our periodical mail (approximately 3,000 issues per month) are printed monthly. Locus Online, the Hugo Award-winning website, receives over 70,000 unique visitors per week. Locus Online does not guarantee minimum views or clicks for ads, and we do not provide reports to the advertiser. By authorizing an agency to place advertisements in its behalf, an advertiser also agrees to pay for such ads in full if for any reason its authorized agency is or becomes unable to do so. LOCUS is now an intrinsic part of everything that science fiction is and does, a primary resource for innumerable enterprises, and a continuing source of information and entertainment. Anyone whose interest in SF extends beyond reading it to wanting to read about it should be aware of LOCUS. It is a complex and complicated task to sell print newspaper advertising space, because it is not as easy as picking up the phone and pitching your ad space to the advertisers. You should have a rate sheet for your classified ads, which will help buyers understand your rate system. Once you are pitching your ad space, it is necessary  that you have written down what you can offer your clients, such as discounts and added-services, which will make the deal all the more interesting, and if anyone agrees on buying, up-sell them. Your sales team should be active, and make sure that each person is dialling at least dozen times a day. You can add value to your service by including your advertisers to participate in the composition of their ads, and always focus on keeping a client rather than getting a new one. As a result, the 300 x 250 often gets the best rate and highest demand because it works better for creative, despite the larger size of the 160 x 600.

Whether they also work best on the left, in the center or on the right depends in part on what else the page contains.
An ad with a phone number in it can result in a response via a phone call rather than a click.
A CPM that is too high can mean that a site is running the risk of selling out all available ad inventory and must focus more attention on boosting site traffic. Other factors that contribute to the disparities include the amount of competition for each site and how deeply they specialize in a particular topic or geographic location.
But it’s a good idea to review the pricing every three to six months as site audience changes. In order to post comments, please make sure JavaScript and Cookies are enabled, and reload the page. He is 45 years old, college educated, has been reading science fiction since his teenage days, and spends over $2,000 per year on science fiction books, magazines, movies, and conventions.
We offer full-page, and half-page horizontal, black & white advertising positions on the inside front and back covers and the back cover.
Everything needs to be in place before you get started, and the most important part is that your sales system should be in order before you talk to someone. The pattern should be an easy one, and it should be easier for readers to read and understand. For example in your print publication, your rate sheet should convey how you are going to charge. Gather contact information of potential advertisers from Yellow Pages or competing newspapers. Also, you should emphasise on the benefits if they advertise with you, and cut down on the drawbacks. In-store traffic because of a coupon ad, an ad about a sale or simple brand awareness is an invaluable form of indirect response.
I think it still has some use in layouts where the space doesn’t allow anything wider or deeper. If the section averages 10,000 page views a month, then $100 is a reasonable rate because it averages a $10 CPM.
First and foremost, you have to have an easily navigable classified section which should be easy for the readers to browse, and you should also have a promotional program which should advertise the classifieds section on other pages of the newspaper. The don’ts are that you fail to organise your classifieds section by not listing everything under headings. With a clear structure for your potential buyers, you should be ready to sell print newspaper advertising. All fonts (Postscript Fonts and Open Type fonts only; no True Type fonts), TIFFs, and EPSs used must be embedded. Readers would want information, on what is being marketed, so provide contact information and rate information.

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