Businesses are now paying companies and websites to advertise their products and services online. We are no longer in a decade where only TVs, radios, and printed methods of advertising are taking place. How much is this online advertising really costing businesses though? Are these ads actually going to make that big of a difference in the success of the company or just get categorized as another sunk cost. Online advertising rates are set based on a combination of ad size, ad location, ad performance, and market demand. The size that an ad is going to be is a large factor when determining the advertisement price. Just as broadcasts sells time and print sells space, online sells pixels. It is said that the most cost-effective ways to advertise online are by search engines, social networks, and online videos.
Rate card prices are one on the most commonly talked about methods for determining the rates these businesses must pay to advertise online. It is said though that these costs are never really set in stone. It is said that everything in the world of online media is open to negotiation and things like package deals, upfront commitments, and volume discounts can help drive the price of these digital ads down. While some websites have prices based on ad space and positioning of the ad other sites like Yahoo and Facebook have set prices for displaying on their main or home pages. Here are some of the rates these major sites are charging to use their resources for the advertisement of your business:
Facebook the ever so popular social networking sites has advertisers pay to have their advertisements take up the whole screen when users log out of the site. When Facebook first came out with this advertising option it was said that the price was around $700,000, but that price has drastically dropped (or it was never really that high to begin with) as it now costs advertisers around $100,000 to consume to log out page of the social networking site.
YAHOO
According to media buyers yahoo asks for around $600,000 for a one day homepage takeover, but typically sells them for around $400,000.
AOL
Similar to Yahoo, AOL's rates to advertise on their homepage go for about $400,000.
AOL
Similar to Yahoo, AOL's rates to advertise on their homepage go for about $400,000.
TWITTER
Not only has Twitter become one of the biggest social networking sites to be created but it has allowed for the creation of "trending topics". Promoted trending topics sell for about $120,000 and are usually supported by a promoted tweet purchase of around $80,000.
YOUTUBE
To have your ad largely displayed with videos on YouTube, advertisers usually pay about $400,000. It is usually sold as a package deal with other media such as in-stream video ads, display ads, or featured video listings.
Not only has Twitter become one of the biggest social networking sites to be created but it has allowed for the creation of "trending topics". Promoted trending topics sell for about $120,000 and are usually supported by a promoted tweet purchase of around $80,000.
YOUTUBE
To have your ad largely displayed with videos on YouTube, advertisers usually pay about $400,000. It is usually sold as a package deal with other media such as in-stream video ads, display ads, or featured video listings.
http://www.promisemedia.com/online-advertising-strategies/online-rate-card-tips-and-guidelines
http://www.inc.com/encyclopedia/advertisingbudget.html/2
http://digiday.com/publishers/what-online-ads-really-cost/
Agreeing with your post, Facebook could be deemed one of the most expensive mediums of advertisement in our time period. There are many reasons for this, including:
ReplyDelete1. Such a specific target audience. Each ad that is posted shows up depending on the specific target audience. For example, the advertisements are so smart that if I were logged in to my facebook and looked up on another tab about the "Biltmore Estate", I would find advertisements alongside my profile for tickets to the Biltmore.
2. Endorsements: Endorsments have left the billboards and found the web. Celebrity/Athlete endorsements have created such revenue that the availability has skyrocketed advertisement prices.
It is insane how blogs and websites can be paid up to 700,000 dollars for an ad. People are willing to pay big money for their product to reach a lot of people. It makes since though, through facebook and emails you are targeting a vast amount of people.
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