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Pay Per Click Advertising Costs Increase by 9% in March

This article is good news for those of us who are publishers for pay per click advertising programs like Google’s Adsense with advertisers paying 9% more for keywords than they were earlier in the year.

‘PRICES FOR PAID SEARCH LISTINGS rebounded in March, rising 9 percent to an average of $1.75 a click, according to the most recent Fathom Online Keyword Price Index, released today.

The average cost of keywords–which had fallen during the first two months of the year, after rising steadily from September through the holidays–now exceeds last December’s $1.70 by about 3 percent. Matt McMahon, Fathom Online’s executive vice president-corporate development, attributed the upswing in keyword pricing to seasonal shifts in ad spending.

While some industries’ keywords went up in price more than others, none of the categories tracked by Fathom Online fell last month. Telecom/wireless terms gained the most ground, growing by 23 percent to 95 cents a click–although this figure is less than the $1.09 per click that the category garnered last year….’

Read more at Search Advertising Costs Surge In March

Viral Advertising

MarketingSherpa has a great article on Viral Advertising which could be of interest to bloggers both in thinking about promoting their own blogs but also in providing adspace ON their blogs.

‘Viral advertising is the red hot tactic of 2005 … but the lack of practical how-to information on the tactic is astounding.

Viral ads are online promotional campaigns that (hopefully) spread “like a virus.” One minute nobody’s heard of it, next minute, it’s everywhere. The term’s been around for almost a decade now, and it’s been the online ad tactic de jour at least three times…’

Adbrite Ad Packages

A blogging friend just pointed me at a new strategy that the AdBrite advertising network seem to be employing – selling packages of ads that will appear on multiple sites. Some of the packages are packages of their higher performing sites in the network and others are theme related on sports, gaming, travel etc. My friend pointed me to a blogging package. They describe these packages on their blog as follows:

‘We’ve been hearing from some advertisers that you’re overwhelmed with the number of advertising opportunities on AdBrite. I hope these pre-selected, high-performing ad packages make your life easier. ‘

I think this is a good move for Adbrite – the only hesitation I have is that they don’t reveal what sites they’re putting the ads on. For instance with the blogging package they just say

‘Blogs inform, influence, and entertain the Internet’s taste-makers. Click “add to cart” and we’ll put into your cart 20 of the best-performing blogs in the AdBrite network.’

As an advertiser I think I’d want to know a little more than that and as a publisher – I want to know how to get in on such a package – looks like good money!

Advertisers Sue Google and Yahoo over Click Fraud

Just spotted an article in the Wall Stree Journal that mentions a group of contextual ad advertisers who are suing Google and Yahoo over issues of click fraud – this will be an interesting one to watch as its going to be a big issue for those behind contextual advertising systems and has the potential to have flow on effects to publishers.

‘A group of advertisers quietly filed a lawsuit in February against Google Inc., Yahoo Inc. and other Internet companies in a potentially important legal test of those companies’ liability for a form of online-advertising fraud.

The plaintiffs, led by Lane’s Gifts & Collectibles LLC, a Texarkana, Ark., retailer, allege that the Internet companies knowingly overcharged for advertisements they sold and conspired with each other to continue doing so. The plaintiffs are seeking to have their suit, which hasn’t received widespread attention, certified as a class action….’

Read more at WSJ.com – Internet Firms Face Legal Test On Advertising Fees

What Do Bloggers Want From An Advertiser?

Jim over at BlogKits writes a good post on What Do Bloggers Want From An Advertiser? and answers the question by telling us what we don’t want. The ‘Do Want’ article will come next week. Looks interesting.

What do YOU want from blog advertisers dear readers (apart from the obvious bucket loads of cash)?

Online Ad spending increased by 21.4% in 2004

Spending on Internet advertising in the US market increased by 21.4% to $7.4 billion in 2004 in comparison to 2003 – a higher increase than any other area. The overall average increase across all mediums was 9.4%. Encouraging signs.

Source U.S. Advertising Market Shows Strong Growth in 2004

via Poynter Online

UCC blogads attracting widespread attention

One of the more interesting and controversial uses of the BlogAds system of blog advertising has been a campaign by the United Church of Christ. Today they’ve come out with some statistics that reveal the success of this campaign. One of the keys to their success is that they created an ad that was not only visually stimulating (it is animated) but also one that was controversial and that stimulated the bloggers that ran the ad to comment on it themselves – thereby stimulating even further attention for the ad. We’re starting to see more and more of these types of ads using the BlogAds system as marketers begin to see the potential of ads that become part of the conversation on a blog.

‘After only one week of utilizing online blogads (shown at right) to promote the UCC’s Stillspeaking Initiative, more than 25,000 internet users have clicked through one of 50 purchased blogads to view the church’s online 30-second “bouncer” commercial….

The UCC’s new blogad utilizes a series of still photos from the denomination’s 30-second television commercial – rejected twice as “too controversial” by the major broadcast television networks – to entice blog visitors to “see the ad the networks didn’t want you to see.”‘

Read more at United Church of Christ News: UCC blogads attracting widespread attention

Interview With Henry Copeland From Blogads

John Hawkins has a good interview with BlogAds owner – Henry Copeland over at A Mini-Interview With Henry Copeland From Blogads. Henry is always most insightful and a creative thinker that I respect so when I see him featured in this type of thing I always carefully read it from top to bottom. Here are a few highlights:

John Hawkins: Do you believe the number of advertisers and amount of revenue generated by blogging is going to continue to grow for the rest of this year and into next year?

Henry Copeland: I think the numbers will continue to grow at LEAST until bloggers get 0.1% of the total US annual advertising spend, $250 billion. That may take 3 years or it may take 18, but it is inevitable. Bloggers understand their subjects and their audiences better than anyone else in media AND they’ve got the lowest overheads. After all, pajamas cost much less than suits.

John Hawkins: I want you to play Nostradamus here — don’t worry, everybody understands you’re just speculating — and give me an estimate: How many bloggers do you see reaching the “earning a living” threshold over the next few years?

Henry Copeland: I’d be thrilled to reach 500. But 5000 is possible. And if things go really well 50,000.

John Hawkins: Are you considering branching out into other types of ads like banner ads or text ads?

Henry Copeland: We’re just now adding a pure text unit, something designed to promote more intra-blog communication: 500 characters, no image, no edit, no HTML, no breaks, no bulk buy. Banners and other IAB (Interactive Advertising Bureau) units are antithetical to the spirit of blogging — there’s no relationship with hyper-literate, hyper-linked conversational blogger way of thinking.’

Read more of this interview at A Mini-Interview With Henry Copeland From Blogads

How Much to Charge for Blog Ads

Over the past few days I’ve had a number of bloggers email asking for advice on how much to charge for advertising on their blogs. I thought I’d open the question up for some discussion.

How much would you charge for advertising on your site?

Of course the answer would vary depending upon traffic, topic, ad type – but let me throw out a couple of ‘hypotheticals’ – well they are actually real life examples from the readers emails.

a) an established site (blog and discussion forum) with 45,000 unique visitors per month (1500 per day) on a niche topic with loyal readership which is growing. How would you determine how much to charge for a banner (468 x 60) across the whole site?

b) a blog with a page rank of 5 with daily traffic levels of 500 unique visitors – mainly coming from Search Engines. How much would you charge for a text link high on the side bar with a title/link and a short description.

c) blog with 10,000 impressions per day looking to sell a variety of ads including the two above (banner and text) as well as skyscraper ads.

So how would you determine how much to charge for advertising? What factors would you consider, what is a reasonable rate to ask? I have my own ideas which I’ll be happy to share once we’ve had a bit of discussion – but I’m interested to know how others make these kinds of decisions. Feel free to contribute below as you feel you’d like.