Monday, December 30, 2013

Direct Advertising

It is the end of the year. Would you like to buy some unused ad inventory in the Mountain West (Arizona, Colorado, Utah)?

I admit 2013 was worse for my web business than 2012. While visits to my site increased, ad revenue dropped precipitously.

My original idea was to try and fund a collection of community directories with affiliate ads. At the time affiliate marketing worked out as follows: I would get a click on a ad about every 100 page views. About 1 out of a hundred clicks would result in a sale. The average commission was about $10.00. This year it takes 500 page views to get a click and only about 1 in 500 clicks converts to a sale. The average commission has dropped to $5.00.

I believe that these poor stats result from browser helper objects that sense affiliate ads. The BHOs either block the ads or change the ids on the ads. Fraud in the industry has caused merchants to cut their commission rates.

I would like to experiment with direct advertising.

Direct advertising should have a higher conversion rate for advertisers than affiliate marketing.

To price the ads, I thought I would start a slight discount from the rate I get from a major internet company that starts with a "G". I get about $2.00 CPM from this large advertiser. So, I figure $1.50 CPM would be a good starting point.

I don't want to deal with transactions lower than $30; So, I decided to offer advertising at $30.00 for 20,000 ad views.

I currently am using two types of ads: boxes and leader boards.

I use box ads (either 300x250 or 336x280) on the events in the calendar.

The events in the directory are viewed on average of 120 times. If I accept your ad, I would place it on 100 or so relevant events in the directories of your choice.  If you are in Cedar City, I would put the ads on the Cedar City Utah Calendar. If you are in Durango; the ads would go on events in the Durango calendar.

I use 728x90 ads for leader boards in the upper fold of a variety of pages. These pages are much less predictable. Some pages get more than 20,000 page views a year. I will place the ads on pages that should add up to 20,000 ads a year.

I am testing direct advertising right now. If you would like to buy direct advertising, please contact me. If there is interest, I will create a program to automate the purchase of direct ads ... at which point I will raise the rates to industry standard rates which are substantially higher than a $1.50 CPM

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