Sooner or later, you will be faced with the decisionof whether to use advertising on your blog or not.Advertising isn’t mandatory for keeping your bloginteresting; in fact, it’s merely an optional tool youcan use in case you want to take advantage of yourblog’s popularity. But once you’ve decided on placingads on your site, there’s one more issue you need toconsider: setting your blog’s advertising rates. Sohow much can you expect to charge or be charged?With blog advertising, there are no set rates. It isup to the blogger to design the correct ad paymentscheme that attracts advertisers and allow him togenerate a reasonable income at the same time.To help you determine the right advertising rates foryour blog, it’s important to consider doing someresearch first, particularly about similar blogs andto consider your traffic and perform some simpleexperimentation using your site.Playing with figures If you think that setting your adrates at low prices will attract more advertisers, youcouldn’t be more mistaken.
Your $300 a month rate maynot stand against another blogger’s $600 a month rateif you only have 50,000 page views monthly and heenjoys 600,000 page views.An advertiser will look at the ratio between the costof advertising on your blog against the amount oftraffic that your site generates, the same trafficthat will potentially click on the ads.A good ‘constant’ to consider when determining adrates is the CPM or Cost-Per-Mille – mille beingequivalent to 1,000. Let’s say a blog receives 150,000page views monthly.
For a 125×125 sidebar ad (usuallythe most common), the blog charges $250 monthly.Divide $250 by 150 (that’s 150,000 divided by 1,000 tocome up with the CPM) and you’ll get $1.66 CPM.The same arithmetic is used by some of the mostpopular blogs, including JohnChow and Copyblogger. Foryour blog, you might want to consider how much trafficyou generate and the number of genuine page views youget. These figures will help you evaluate your blogand come up with the appropriate ad rate.Since these blogs are well established, you couldstart at far lower rates if you’re still buildingtraffic. Consider a starting figure of about $0.5 CPM,which is friendly enough to your advertisers and goodenough for you. Raise this rate gradually as your blogbecomes more popular and as more advertisers andsponsors buy ad space from you.Size and location Advertising rates also varydepending on the size of the ad and where it willappear. Larger ads and those that will be placed inprime locations or ‘hotspots’ will cost more.
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Ads willalso be more expensive if they will appear along withcontent or on your blog’s header. Cheaper locationswill be those found on the page’s footer and the arealocated after the fold.Factors that influence ad rates Not every blog canenjoy strong advertising support. That’s mainlybecause not every blog has the right amount of sitetraffic, the right visitors, market demographics orniche. These are just some of the factors that affectyour eligibility for ad placement and the rate you cancharge on your blog.Blogs, by the way, do not pass through the samechannels as traditional print media. The cost ofproviding information in blogs is low enough thatbloggers can offer low advertising rates and stillearn a profit.
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