digitalpoint
Well-known member
Well ultimately it's about supply and demand... if you have the demand to support the supply, the actual cost rises as people bid it up. Of course you could just set a minimum bid if you were using a bidding system... for example you could set a $50/CPM minimum bid or $10/CPC if you really wanted.Right - that can work...BUT, a bidding system with relatively low minimum will end up giving you a much lower price than yearly rates for a client who wants targeted ads. It always depends on the type of site. For instance, a site which is about power tools is likely to be able to get much more from a individually sold client than from a bidding system.
But yeah... obviously it depends on the market, if you have the demand to support the supply, etc.
We see examples of it within our own site... like running ads within certain areas (Web Hosting, Affiliate Programs, etc.) sometimes costs the advertiser $70/CPM even though the minimum bid we set is $1... simply because certain areas have way more demand than supply. Now if only I could get $70/CPM for all pages....