The Ad Man Answers #39

Thursday + Gregory Huffstutter = The Ad Man Answers

Q:  How do you find the CPM and the cost to advertise if you only have the audience number?  For example, I know the monthly unique hits are 721,831, but I don't know the value (cost to advertise) and the CPM?

 

 

--Sorrenia

 

A: I’m afraid you can’t know a website’s asking price or CPM from only their monthly unique visits.

 

 

You’d have to contact the site directly in order to get their posted advertising rates, which then allows you to figure out their CPM.

 

That said… you can always guess.

 

Typical CPMs for online display advertising are in the $10-$30 range. The lower end of the range would be for non-targeted, mass-reach websites (like people.com) or low-demand, niche websites (like basketweavingsupplies.com).

 

The high end of the CPM range would be for more demographically targeted, high-demand websites (like espn.com) or pre-roll video sponsorships.

 

So without knowing the specific kind of website, The Ad Man would split the difference and guesstimate a CPM of $20.

 

Using the formula for CPMs, a website with 721,831 unique visits should charge around $14,500/month, assuming your ad was displayed to 100% of the site’s unique visitors.

 

Please keep in mind that advertising rates are based on a Supply & Demand model – similar to buying airline tickets – so prices can depend on when you purchase, competitive pressure, how much unsold inventory remains, and whether or not you have a layover in Chicago.

 

The $10-$30 range for online advertising is not scientific, nor is it set in stone. Some websites may need to charge less than $10 CPMs to attract advertisers. And others can get away with charging $125 CPMs if the demand happens to be there. That’s free-market capitalism at its finest.

 

So the best way to get actual costs is to send the website an e-mail – or pick up the phone – and ask for their rate card.

 

Then negotiate those CPMs like you’re haggling with a Cairo street vendor over a new pair of shoes.

 

Gregory Huffstutter has been punching Ad Agency timecards for the past decade, working on accounts like McDonald's, KIA Motors, and the San Diego Padres. He recently finished his first mystery, KATZ CRADLE and is currently on submission. The first 100 pages of his novel are linked here. For general advertising questions, leave a comment or send e-mail to katz @ gregoryhuffstutter dot com with 'Ask The Ad Man' in the subject line.