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How to Establish Web Advertising Rates

Ujwal Deshmukh Feb 28, 2019
Web advertising helps you reach a worldwide customer base. This write-up tells you how to set appropriate rates, and also acquaints you with some of the benefits of such advertising.
World wide web is the fastest way of advertising your products, to the global consumer base. It is actually the 'clicks', that determine the overall revenue of a website.
Now, any common user of the Internet would wonder, how do my clicks turn profitable for the website, when I am not paying even a single penny from my side? Well, this is actually a common, but an important question!
Whenever you visit a website, you would find advertisements, either at the sides, at the top, or at the bottom of the web page. It is actually these advertisements that pay the website. It is through the website that the advertisement is visible to its users all over the world. Web advertising has several benefits, some of which are discussed here.


Web advertising is amongst the quickest ways to reach a large consumer base, unlike the print media, which is usually confined to the local population.

Consumer Specific Marketing

Consumer specific marketing is amongst the popular reasons, why people choose Internet in order to advertise their products. Users who are interested in your product, will search for it on the Internet.
This would yield them relevant articles and therefore, relevant ads. It would help them know the product better and therefore, chances are high that they would purchase it, through the Internet.

Accessible Anytime

Internet is never closed. It is open to everyone, all the time. Therefore, the advertisement would be displayed 24x7.


Web advertising is cost-effective. This is because fluctuating economic conditions lead to fluctuations in the rates. Also, in case of cost-per-click campaigns, advertisement impressions are free. Companies advertising their products only have to pay, when the user clicks on their banner.

Instant Transactions

Many users prefer buying products on the Internet, as it enables them to initiate instant transactions. The user can inquire about the product immediately and even purchase it, then and there itself.

Instant and Improved Statistics

Measuring web statistics is easier as compared to other media. Through clicks, the company can come to know, which type of ads are frequently seen by the users and which advertisements led to an inquiry or purchase. The time spent at each banner, can also be easily measured.

Establishing the Rates

Websites that have a larger amount of Internet traffic do have higher rates. However, before quoting the advertising rates for your website, you need to consider some factors.

Monthly Internet Traffic

The first thing in establishing web advertising rates is to determine the average of the total monthly traffic received by your website. People always look out for websites that receive a higher amount of Internet traffic.
Track the web traffic for a few months and then highlight the growth of traffic, wherever applicable. Prepare a report, which consists of substantial data pertaining to the web traffic of your website.

Check Out the Competitor's Website

Once, you have found out the traffic for your website, move on to analyze the web advertising rates of your competitor's website. Check the rates that they quote for advertisements on their website. Over here, see that the size of your advertisement is similar to theirs, as size of the ad does play a large role in determining the subsequent costs.

Charge Per Thousand Clicks

Most of the advertisers are looking out for rates per thousand page views. To calculate, how much your competitors charge for thousand page views, you can simply divide the average monthly traffic of the website in thousands, with the cost of one ad. The resultant number will be the web advertising rate for thousand page views.

Quoting the Right Price

You need to quote price rates for web advertising, either equal to your competitor or a bit lower than that, so that you can attract more clients.
If you are a website owner, then you need to quote rates, which are in liaison with the current market scenario and economic condition. If you are looking out for websites offering the best deals on banners and ads, you need to search for the lowest charging websites and also analyze the average monthly traffic, before posting your ad on their web page.