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Ok we have a advertising system, we have built for a new site we are about to launch. We have opted at present to price advertising, in blocks of 30 days, rather than cpi and cpc

That really is because I want to keep things simple.

Ok the system, is fairly smart, in that we can target specific pages with specific ad types, in the ubiquitous slots of:

Header ( 728×90 )

Banner ( above and below the fold 468×60 )

Sidebar ( 250×250 )

Targetting I have segmented into three niches:

1. global advertising ( ad not reliant on point 2 or 3 below )

2. geo targetted advertising

3. industry specific advertising.

None of the above is earth shattering, but the code is fairly smart and above all it works.

So here is the million dollar question, I need to set pricing for the ads, as they are or hopefully will be an important revenue stream, predicted at circa 10%+of site revenue.

Initial calculations, suggest 500,000 page views per month – month 1 – 6 6 – 12 I calculate 1,000,000 page views per month.

The above is calculated on some maths , some industry knowledge and a lot of luck .. but it is feasible.

So with this in mind, what would you set the ad pricing at ?

Obviously as impressions, clicks increase we will shift the system over to cpi and cpc system.

The ads are all controlled in house and served by our ad system, with full stats.

So to kind of bolster some figures, we did a sample test over 5 days , for a select group of beta testers ( approx 500 ) Page impressions across the site, topped 100,000 ( this figure is somewhat flawed as we asked the testers to test as many pages of the site as poss )

However, we did another test and: with a dozen testers, asking them to use the site as they would any other site. This gave a more relative prognosis and the results are:

average time on site 41 minutes average page views 100

We have several ( local by country ) competitors, who dominate the market. The smallest competitor of which sees 8 million page views per month from 800,000 uniques ( their figures not mine )

Our site ( 2 years in dev ) is possibly on scale as large as number 1 site for our niche. But obviously hasnt got any foot fall, because we havent even opened the doors.

So, my questions are:

How would you set the pricing for ads, and what would your advice be for best practice and scalability.

Appreciate thoughtful responses please :)

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My first thought would have been to check up what BSA offers for approximately the same amount of exposure, and based on that you would raise / drop the price in order to ensure competitiveness (and starting a bit lower than bsa might prove to be effective with planned incremental growth /6 months or less)