To pay expenses for my website, I am considering displaying targeted
or contextual advertising to the visitors. What is the approximate
range of income I could expect to receive from advertisers per
thousand page views?

<According to a study by AdKnowledge, the average CPM (cost per
thousand) rate is $34.23. (Marketing Today. Study Reveals That Sixty
Percent Of All Conversions From Online Ads Occur Within The First
Thirty Minutes After A Click.)
http://marketingtoday.com/research/ad_knowledge/60_perc_conversions_first_30_min.htm

Although the average CPM quoted by AdKnowledge is used as an industry
benchmark, according to industry insiders the average figure is
probably inflated because it doesn't fully reflect discounts on rate
cards and creatively packaged deals. A more realistic figure for the
average CPM is somewhere in the 20s.  Rates on targeted advertising
have been increasing. Some premium publishers with niche content now
command CPM rates of $50 and up. Publishers that reach key business
decision-makers can charge rates of close to $100. (Source:
Advertisers get Picky bt Marius Meland. Forbes.com)
http://www.forbes.com/2000/01/31/mu4.html

The average cost per 1000 rate is $34. (Source: Netprofit by Gord
Hotchkiss. May 20, 2003.)
http://www.searchengineposition.com/info/netprofit/adbudget1.asp

CPM pricing can range from $1 to $50 or more depending on the following factors:
Popularity of the site ? how many people it reaches.
Quality of the audience.
Degree of targeting.
Quantity of impressions being bought.
Size and content of the ad.
(Source: Online Advertising by Karen A.B. Jagoda. Complete Campaigns.)
https://www.completecampaigns.com/article.asp?articleid=25

To get a good idea of how much you could charge for advertising, it
would be worthwhile looking at the rates charged by websites with a
similar audience to yours.>

<Search strategy:>
<"online advertising"  "average cost"study>
<://www.google.com/search?hl=en&lr=&ie=UTF-8&q=%22online+advertising%22++%22average+cost%22study>

<"average cpm" adknowledge>
<://www.google.com/search?hl=en&lr=&ie=UTF-8&q=%22average+cpm%22+adknowledge>


<Hope this helps.>

---

Request for Answer Clarification by zurlit-ga on 21 Sep 2004 17:40 PDT

The articles quoted are from 2 to 5 years old with most on the older
end of the spectrum.  Rates have been falling rapidly, and my question
is about realistic current figures. The Forbes article from the year
2000 says that realistic rates are in the $20 per thousand page views.
 The figures I recently obtained from one online advertiser were $0.25
to $1.50 per thousand page views. Subsequently, I was told that that
was optimistic.  I posted the question to ask for some research into
REALISTIC CURRENT CPM rates. Please see what you can find.

---

Clarification of Answer by belindalevez-ga on 22 Sep 2004 04:16 PDT

<According to an article on WebsiteGear, January 18, 2004, average CPM
rates are $0.50.
http://content.websitegear.com/article/print.asp?id=revenue_traffic

Looking at forum postings by webmasters shows that they are getting a
range of effective CPMs from as low as under $0.01 to as high as
$7.75. Pop ups tend to give a higher rate than banners. From this
sample of 43 results, the average CPM is $1.19 (I ignored the $166
figure).

The following figures have been posted on forums in 2004.
 
Sitepoint
Skys $0.13
Popups $1.60 (February 29th 2004)
$0.38 with FocusIn (March 1st 2004)
http://www.sitepoint.com/forums/showthread.php?t=155811

$0.66 (February 13th 2004)
http://www.sitepoint.com/forums/showthread.php?t=152620

$4.25 (18th February 2004)
$2.50 (18th February 2004)
$166 (19th February 2004) ? misprint
$0.50 (20th February 2004)
http://www.sitepoint.com/forums/showthread.php?t=153890

$0.40 - $0.50 (March 12, 2004)
http://www.sitepoint.com/forums/printthread.php?t=157691

Geekvillage.com
$0.09 (29th August 2004)
$0.20 (30th August 2004)
$0.50 (30th August 2004)
http://www.geekvillage.com/forums/showthread.php?s=fae5253219f59bca423343e4fdd97ba5&postid=142811#post142811

Under $0.01 and almost $3.00 (11th March 2004)
http://www.geekvillage.com/forums/showthread.php?s=fae5253219f59bca423343e4fdd97ba5&postid=135873#post135873

A posting on geek/talk on 14th August 2004 says that the CPM for right
media ads is as low as $0.10 and as high as  $0.50.
http://www.geekvillage.com/forums/showthread.php?s=60852df7283873de6125355e9f428fa3&postid=143051#post143051

A posting on VirtualPromote Forums (18th June 2004) quotes CPM of $0.25 to $0.50.
http://www.virtualpromote.com/apps/webmaster.forums/action::thread/thread::1087479295/forum::advertising/

Websitepublisher.net
TribalFusion CPM of $1.25 (Website publisher. 1st May 2004).
CPM is $1.00 (1st June 2004).
CPM of $0.50 (1st October 2004).
$2.90 with pop unders (1st October 2004)
$0.80 (1st October 2004)
$3.57 pop under and $0.50 banners (1st October 2004)
http://www.websitepublisher.net/forums/showthread.php?t=753

Fastclick
$0.50 for banners and $0.37 for skyscrapers (8th February 2004). Ad money forum.
http://www.ozzu.com/ftopic20848.html

Forums.seochat.com
$7.75 (31st August 2004)
$0.50 (31st August 2004)
http://forums.seochat.com/showthread.php?p=112820


$3.37 (18th August 2004 Sean Bonner)
http://www.seanbonner.com/blog/archives/000774.php

On NetTalk
Popunder $3.00 CPM
Banners $0.45 CPM
$0.10-0.20.
$0.40 (10th January 2004.)
$0.20 (14th January 2004)
http://www.nettalk.us/post-35380.html

$0.03 CPM (29th January 2004)
$0.11 CPM (29th January 2004)
$0.12 CPM (2nd February 2004)
$0.05 CPM (4th February 2004)
http://www.nettalk.us/about4186.html

$1.5 CPM (25th February 2004. Jim World Forums).
http://66.102.9.104/search?q=cache:aKx0WUcnVfsJ:www.jimworld.com/apps/printable.forums/forum::buy-my-website/thread::1077682408/action::thread/+2004+cpm+posted+%22i+make%22&hl=en

Freewebspace forums
$1.00 (July 1st 2004)
http://www.freewebspace.net/forums/showthread.php?t=55724

Nocertainty.com
$3.00-$3.50 for FastClick. (July 2004, Dennis Pallett)
http://www.nocertainty.com/m/2004/6>

<Hope this helps.>

Good work. The answer to my request for clarification was exactly what I needed.