Why I Do Not Like CPM Advertising On Blogs

Published: May 30, 2008, 2:12 pm

I have had blog networks approach me like Federated Media, etc etc to handle my advertising. They just do CPM advertising though and they take a HUGE CHUNK like 40%+. I guess I should give you some background on how we do our advertising here. Basically we price it monthly at a flat rate and we let the market set the prices. We are currently sold out but when a slot opens it will be more then what the previous person paid or less depending. Fortunately (or unfortunately) for us the prices have only increased since we started doing advertising over a year ago. Also we have a very low turnover rate. I think the renewal is something like 90% so I guess advertisers are getting a great ROI. Allowing the market to set the prices IMO is the way to do it. This month (May) shoemoney.com will hit a all time high taking in almost $40,000 in advertising for one month. If the rate of growth exceeds it should do a half of a million dollars in gross revenue (not profit) this year. That

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