6 Responded To This Post

7086. Juha Ylitalo said in March 12th, 2008

One thing, which always make me wonder economics in internet is that we have these competitions, where you can win 125×125 ad spot for one month and it is suppoesd to be worth xx dollars.
This is all fine and dandy, if website has more or less queue of advertisers, who wants to get their ad shown in that particular spot, but if that is not the case, then we can question what is the real value of a spot, which normally has ‘free ad space’ or something similar in it.
As an concrete example… I’ve never sold private ad space in my blog, but as far as I know, I could say that I will donate one 125×125 ad spot for competion xyz and list USD50 without offering any hard facts on why it would be worth it.

If we want to look it from another angle… you have 125×125 Project Wonderful as spot in here, which currently says that I could buy that spot for 10c. Unless some would start competing, I could buy that spot for USD3.10 for whole month (instead of suggested USD30).

7102. Life is Colourful said in March 13th, 2008

First thing is, the ad spot value is decided on the price it has been sold before. Even if advertiser is not available there, that does not bring down the value of ad spot.

You probably won’t value your vacant home for $0 when you think it’s worth $1200 when on rent.

Now @ project wonderful [PW]; PW does not have lot of inventory of advertisers and the ad spot is installed there to test their ROI. I would probably sell that ad space for more at DP forums than giving it to Project Wonderful. It’s anyways going away after the test period. The biggest loss in PW ads for advertiser is, he won’t get direct backlink from the blog. That’s point one. Second point is, For the traffic only, they would be paying but if I move the ad spot below the fold, the traffic factor will also go away and still the advertiser will pay the same amount of $0.10, in that case what you getting for your $3.10, neither traffic nor backlink, correct?

The ad spot value I decide by three factors.
1. The ad spot location
2. Blog’s statistics
3. The real estate taken up by that ad spot.

Even if there are no advertisers in the queue, there is no point in giving it away for almost free. Why not to better avoid the clutter of ads in that case.

7300. Prosperity Writer said in March 23rd, 2008

of course being a sponsor, you will get something out this. maybe not cash but some exposure for your website. in most cases the advertisement you get back is much more than what you gave. so why do we need to publish that i donated that much, or this much here?

7337. Agent 001 said in March 24th, 2008

I am participating on that contest. Jason has done a very good intelligent work.

15547. Pweng Bee said in July 10th, 2008

I also participated in t his contest. :)

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