Operation HomeOwner Phase II: Banners
Almost finished. It's nearly time to finally start utilizing the power of EBay. Here's the concept: auction off banner space at Moluv.com. Not a complex idea, but a fundamentally sound one, I think. It's easy to figure out how much Yahoo or Google charges for ad space, but how do I figure out what to charge for ad space on my site. The answer is: I don't. Let the open market figure it out.
Comparatively, a company like Yahoo! might charge $30 for 1000 page views. If a banner gets 5000 page views in a day, the company posting the ad would have to shell out $150. On my site, I don't have the time and sales resources of a Yahoo!, and I'd just be picking numbers out of the sky if I chose a price to charge per thousand.
By auctioning off a month's worth of banner time, with no minimum bid required, people can pay whatever they want. If only one person or organization bids and wins with a flat rate of $1, they'll get to share banner space as one of 5 to 10 advertisers for over a month. Since Moluv.com gets maybe 15000 page views a day, that would probably turn out to be a pretty sweet deal. At the $30 per thousand page views rate I mentioned earlier, that $1 per month bid would be equivalent to paying Yahoo! $4500/day for the same amount of exposure.
Over time, though, I'd imagine that eventually the open market would recognize the value and begin bidding at a rate more in line with the value they'd be getting. It might be wishful thinking, though, but its worth a shot.
This weekend I'll start prepping the eBay offer. When all is said and done for the first round, I'll make sure to share the results.
Comparatively, a company like Yahoo! might charge $30 for 1000 page views. If a banner gets 5000 page views in a day, the company posting the ad would have to shell out $150. On my site, I don't have the time and sales resources of a Yahoo!, and I'd just be picking numbers out of the sky if I chose a price to charge per thousand.
By auctioning off a month's worth of banner time, with no minimum bid required, people can pay whatever they want. If only one person or organization bids and wins with a flat rate of $1, they'll get to share banner space as one of 5 to 10 advertisers for over a month. Since Moluv.com gets maybe 15000 page views a day, that would probably turn out to be a pretty sweet deal. At the $30 per thousand page views rate I mentioned earlier, that $1 per month bid would be equivalent to paying Yahoo! $4500/day for the same amount of exposure.
Over time, though, I'd imagine that eventually the open market would recognize the value and begin bidding at a rate more in line with the value they'd be getting. It might be wishful thinking, though, but its worth a shot.
This weekend I'll start prepping the eBay offer. When all is said and done for the first round, I'll make sure to share the results.
posted by moluv at 4:57 PM
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