If you are confused by the cost of Banner Ads, you’re not alone. There are no set Banner Advertising rates. Many bloggers and site owners are left in the dark when determining how much to charge for their Ad Space. Ad networks simply accept the highest bidder.

The best way to determine the worth of a particular Banner spot is to scope out and research the market. Compare similar blogs and websites like forums. Take into account their unique visitor count, the target audience and Google page rank. Most advertisers look for these key pricing indicators. Other indicators are discussed below.

Look for costing information on the websites “advertise” page. If they don’t have one, request their pricing rates or a copy of their media kit by contacting the directly.

You can also find similar spots being sold at a Banner Auction. Just browse the marketplace or become a member and ‘watch’ relevant auctions to see how much the Ad Space sells for.

Banner Pricing Indicators

Since there are no hard and fast pricing rates, here are some factors which influence the cost of Banner Ads:

• Ad Spot Position, positions above the fold (visible without scrolling) are worth more;
• Horizontal banners are more readable and therefore usually cost more;
• More advertiser competition on a page decreases the Banner Ad value;
• Targeted content is more valuable to certain advertisers than a general topic website;
• The unique visitor count. Although, some advertisers would rather a relevant niche site with less traffic, than a highly trafficked irrelevant/generalized site.
• And the most obvious: size does matter. The bigger the Banner Ad, the more it should cost.

Costing Methods for Advertising Space

There are several methods publishers (site owners) charge to display Banner Ads. The most common and widely used are:

• CPC (Cost Per Click) – the advertiser pays for each time a site visitor clicks on the Banner Ad;
• CPM (Cost Per Thousand Impressions) – an advertiser pays to have their Banner displayed 1000 times. Many websites require advertisers to buy a certain minimum amount of thousand impressions.
• CPA (Cost Per Action) – the advertiser pays a commission or flat fee each time a visitor clicks on their Banner Ad and performs some sort of action (like making a purchase, subscribing or registering). This is essentially an affiliate program.
• Cost Per Time or Term Based – Banner Space is bought for a period of time (number of days, weeks or months).

Each costing method (other than time placements) will require thorough reporting. Ad networks provide reporting through their automated systems.

For those selling Banner Advertising Space directly to advertisers, the time period costing is simplest. It’s also most preferable since the publisher’s income isn’t reliant on the quality of the advertisement.