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View Full Version : clickthrough rates
interactive 11-11-2002, 07:50 PM Hello, not sure if this is the right forum but here goes. I'm working on a search engine, and in order to keep it going I need a source of income. Well an obvious source would be to sell advertising space. I'm in a way copying google's idea. Little boxes to the left of the search results. These would match what the user was searching for like for example, if a user searched for "cheap webhosting" it would match advertising to webhosting. I was going to charge by click throughs. Heres my qestion, how much should I charge and is this the way I should do it? I was thinking around $0.10 a click through. Thanks.
LinuXpert 11-11-2002, 08:00 PM It depends on how popular your site is. Free first charge later is also a good idea.
-Eric
interactive 11-11-2002, 08:03 PM Good idea. Any idea on what google charges?
Pilgrim 11-11-2002, 08:12 PM Depends on your keywords.
I'm currently paying $ 1 per click on the word hosting
ZiCmaN 11-11-2002, 08:15 PM Originally posted by Pilgrim
Depends on your keywords.
I'm currently paying $ 1 per click on the word hosting
Seriously in your opinion, is it worth it? I mean not to ask a dumb question because if it were not worthwhile, I guess you would not be paying $1.
Guess what I am asking is, are they providing a real good means of traffic to your site where you would continue it?
Thanks
ZBoca 11-11-2002, 08:25 PM Originally posted by interactive
Hello, not sure if this is the right forum but here goes. I'm working on a search engine, and in order to keep it going I need a source of income. Well an obvious source would be to sell advertising space. I'm in a way copying google's idea. Little boxes to the left of the search results. These would match what the user was searching for like for example, if a user searched for "cheap webhosting" it would match advertising to webhosting. I was going to charge by click throughs. Heres my qestion, how much should I charge and is this the way I should do it? I was thinking around $0.10 a click through. Thanks.
good idea.. Charge much more than $.10/click. $.10/click is cheap for highly targeted banner ads, but text links should be more expensive, and also simply because the visitor int he case of web hosting, is actively searching for a web host. Webmaster sites generally charge between $.10 (low end) to $.35/click, and web hosting companies pay this, but the reality is, not everyone at that site is going to be looking for a web host. This just means that targeted banner ads are expected to be around $.10-$.35/click, but your text links will be even more targeted meaning a smaller audience will be interested, so I would start your rates at $.50/click+.
You always want to charge enough to cover your advertising costs. If you're charging $.10/click to web hosting companies, you're not going to be able to afford to advertise your site so people actually come and click the ads. I'm not sure if you're planning on advertising your site, but especially keep that in mind if you do.
Zak
interactive 11-11-2002, 08:35 PM Hello, Ya I'm planning on advertising. Most of it will hopefully be word of mouth though. I'm thinking around $0.40-48. Thanks for the input!
Originally posted by ZBoca
good idea.. Charge much more than $.10/click. $.10/click is cheap for highly targeted banner ads, but text links should be more expensive, and also simply because the visitor int he case of web hosting, is actively searching for a web host. Webmaster sites generally charge between $.10 (low end) to $.35/click, and web hosting companies pay this, but the reality is, not everyone at that site is going to be looking for a web host. This just means that targeted banner ads are expected to be around $.10-$.35/click, but your text links will be even more targeted meaning a smaller audience will be interested, so I would start your rates at $.50/click+.
You always want to charge enough to cover your advertising costs. If you're charging $.10/click to web hosting companies, you're not going to be able to afford to advertise your site so people actually come and click the ads. I'm not sure if you're planning on advertising your site, but especially keep that in mind if you do.
Zak
okihost 11-11-2002, 09:03 PM .50 for a search engine that prob does not have any traffic?? I suggest starting at .05-.10 per click. You can get listed in the first 10 at alot of hosting directories for under .50 click.
interactive 11-11-2002, 09:06 PM OKIHost, Thats why I was going to offer it free for a month or so. Get some traffic then charge some (start out at arund .10) then raise it over a period of time.
ZBoca 11-11-2002, 11:41 PM Originally posted by interactive
OKIHost, Thats why I was going to offer it free for a month or so. Get some traffic then charge some (start out at arund .10) then raise it over a period of time.
Your low amount of traffic shouldn't reflect your prices, but should effect your minimum deposit.
If you have low traffic and it's very targeted, charge high ($.40+), but have a low initial deposit until you have established traffic. Anyone that wants to pay less per click simply because you don't have a lot of traffic is silly-- they should be worried about a big initial deposit. In my opinion, as long as your results are based on the search phrase/keyword, you shouldn't charge any less than the big guys do. If I see a search engine that has a low minimum deposit and reasonable rates, I sign up. I don't care if my campaign ends 2 years down the road. ($25 deposits)
Zak
Kaumil 11-11-2002, 11:43 PM Interactive - It's a bidding system.
LinuXpert 11-11-2002, 11:48 PM Agreed
A bidding system is the best solution IMO
-Eric.
Worthen 12-15-2002, 10:25 PM Depends on whether your search engine is an all inclusive SE or a niche SE? (as to where you should set your minimum price per click)
Google Adwords start at .05 but you must bid more to get a high placement unless their is little competion for the keyword.
Of course a highly profitable keyword like web hosting, mortgages, insurance, online casinos, weight loss and many many more will cost you a much higher minimum bid at Google.
I'm replying to a old post...if you are still interested in getting the skinny on how to make your SE pay off...I have one, Awdfang.com and I'd be glad to share a few other tips.
The trick of course, is to get significant amounts of traffic for less revenue than that traffic produces.
You can get the traffic, you can get the searches, but you still have to get your ads clicked.
Google will disable your campain if it falls below half a percent click through rate, or they will disable you if you fall below 1.5% if your campaign is syndicated (meaning on their partners sites as well - you choose)
Imagine how many searches you must have to gain revenue at half a percent click through with a nickel per click. There is a better way.
My way probably isn't the best...but it's a far sight better than that one...or I think so anyway.
You tell me how to get the traffic...I'll tell you how to make it pay off.
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