Strategies for fixed vs. CPM based pricing for publishers

AppId is over the quota
AppId is over the quota

Two of the most important decisions a publisher makes is their ad set up and pricing. For general information, our How to Price and Place Your Ads guide provides in-depth help with pricing and placement. If you want to delve deeper into your strategy, you’ll want to put some consideration into the 2 primary direct sale pricing models: fixed rate and CPM, which we’re about to discuss.

Fixed-Rate (or sponsorship/tenancy) is a simple time-based way to sell advertising; you offer up a set number of slots in one ad zone, for a fixed rate, and the ads are displayed over a 30-day period. A zone can display just one ad, or you can rotate a pre-determined number of advertisers in the same space.

The CPM model consists of setting a price for 1000 impressions, and letting the advertiser choose how many impressions they want to purchase.

It’s flexible. Allows advertiser to choose how much inventory to purchase, and they can decide to purchase more impressions at any time.Uniformity. Many ad networks use “per 1000” metrics; keeping a uniform rate helps you and your advertisers compare results to other networks.Good for large volume sites because the minimum budget required is lower.Can easily integrate with other ad networks (like setting a “backfill,” or default ad partner, so we display another network’s ads whenever we haven’t made a sale).Can typically make more money per 1000 impressions compared to flat rate, because people are buying impressions a la carte.Great for 728×90, 300×250, and 160×600 units.Provides an advertiser with a greater percentage of impressions on the site.Helps advertisers get value out of small sites or ones with unpredictable traffic.Appeals to advertisers with set budgets.Easy concept for inexperienced advertisers to grasp.Commonly used for 125×125 units and non-IAB standard sizes.

Each website requires a different setup; there isn’t a one size fits all option that dictates success. You’ll want to look at similar sites in your category, then the best sites in the category, to understand the marketplace value of your inventory. This can help inform your choice and highlight trends, like the high level of Fixed-Rate units that are sold by Design & Development sites in the Icon Intensity bundle. Question why someone would want to buy advertising. Investigate how advertisers currently buy ads on similar sites. Experiment. The hard work will pay off. We are a tool that can help you succeed.

If you are already a BuySellAds Publisher, be sure to put yourself into the mindset of the advertiser and be creative. Contact us if you need recommendations with pricing and strategy. We know the marketplace and want to help you grow. We’ll help you find the solution that is best for you.

If your site isn’t currently with BSA, let’s talk.

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