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My startup got approved for the BuySellAds program. I setup ad-space on my website on 3rd April. I got two advertisers on 7th April. The ad-space is getting 70k ( according to the BSA algorithm ) impressions and I have set the price for a 130x100 ad to $25 ( for 30 days ). My startup's a twitter tool targeted towards businesses and the ads too are of tools targeted towards people who use twitter for their businesses.

I just checked the ad-spot statistics and found that it did ~24k impressions in 7 days ( today's April 14 ) and got ~200 clicks ( ~100 each ). CTR for both of them is ~0.81%.

Is $25 enough for such results? If I calculate, they will probably be getting 400 clicks by the end of 30-day span before the ads expire. Is $25 reasonable? Or just too low? I also have a Google Adsense ad at a better spot which earns me ~$1 with ~10 clicks.

Should I increase my BSA rate? Or $25 is just fine? I don't want the advertisers to run away after a month.

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If you can, fill up all your available ad spaces for several months in a row and then raise your prices gradually as demand increases. If the demand isn't there, then it's a good sign you're priced too high. The trick will be finding the sweet spot where you have a steady stream of advertisers at a good advertising rate. You should also add a page on your site for instructions for advertisers when all your ad spots are filled up. (Cool idea for a Twitter app, by the way).

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Thanks. How do you know the idea, btw? – KPL Apr 15 '11 at 5:21
I looked at your profile, went to your site, saw the name of your Twitter app on your blog, and did a quick search. – Virtuosi Media Apr 15 '11 at 7:01
Oh :) – KPL Apr 15 '11 at 10:50
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Since you said you received 24k impressions in 7 days, it looks like your monthly impressions might be rising to almost 100k per month, which is great. You could probably charge $50 or $60 for those ads if they are getting 100k impressions. CTR is different for each ad of course, because it depends on the ad creative, what the ad is selling, if your audience is interested, etc. But for those amount of impressions, $50 or $60 would be fine.

One thing I want to mention is that you can raise your price for an ad zone in your account, and it will only affect new advertisers that purchase the raised price. You can keep your current advertisers at the old price for as long as you wish. This will allow you to see how well your ads will sell to new advertisers while keeping your current advertisers at the old price for a while longer. Then when you are ready to raise the rates for the current advertisers, just open a Support Ticket to let us know.

I hope this helps! There is also an article on pricing and placing your ads here if you are interested in reading it: http://buysellads.com/support/help/cat/3/id/374

Cheers, Angela

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Thanks Angela, that was enlightening. I was unaware that the current advertisers are charged the same amount even after 30-days. Thanks a lot. – KPL Apr 15 '11 at 16:27

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