Learn how to effectively sell ad space by understanding the minimum requirements, implementing best practices, and leveraging key strategies. Maximize your revenue potential and attract advertisers with valuable insights.
As a publisher, understanding how to sell ad space effectively can be a game-changer for your revenue generation and overall success. With the advent of programmatic advertising, the revenue possibilities for publishers have become abound. According to Statista, the programmatic advertising ad spend will touch $800 billion by 2028 from the present 595 billion dollars.
In this comprehensive guide, we will delve into the intricacies of selling ad space for publishers, providing you with invaluable insights and actionable tips to maximize your ad revenue potential.
Best Ways to Sell Ad Space
There are five effective ways to sell ad space:
Before we dive deep into how to sell ad space, let’s understand what ad space is.
What is Ad Space?
Ad space refers to the blocks of area in a webpage designated to display ads to the viewers. They are the real estate of digital marketing. Advertisers rent these spaces via RTB (real-time bidding) or direct deals to display their ads in exchange for monetary compensation to the publishers.
While we interchangeably use ad space and ad inventory, there is a slight technical difference between the two. Ad inventory is the ad space that a publisher is ready to offer to the advertisers. While ad space is a specific slot on a page.
There are many types of ad space that you can sell to advertisers. Some of them are:
- Banner ads
- Video ads
- Text ads
- Interstitial Ads
- Native ads
- Pop-up ads
- Sidebar ads
Now that we have read about ad space, let’s cover a bit about the requirements to sell them.
Minimum Requirements for Publishers to Sell Ad Space
1. High-Quality Content
Unless your content is of high quality, you will have a hard time attracting an audience to your website. Low traffic means a lower number of advertisers will be interested in advertising on your website.
When advertisers seek a website to promote their products or services, they prioritize finding sites with genuinely unique content that possess high quality and remain relevant to the target audience. Moreover, you should also post content consistently to increase your monthly views.
That said, you should adhere to these essential factors in order to attract advertisers effectively. In fact, according to Semrush, creating more content boosts website ranking.
2. Sufficient Traffic Volume
The logic behind this point is simple – a steady traffic flow means more ad impressions, which in turn indicates a possibility for higher conversion rates. Even if we separate the conversion rates, websites having high traffic volumes will always be preferred by advertisers who plan to run brand awareness campaigns.
While there are no traffic requirements in direct deals with advertisers, you may require a specific traffic volume when opting for programmatic platforms like ad exchanges or ad networks. For example, to apply for Google AdSense, a publisher would require 250 unique visits to their website. And to apply for a Google AdX account, a publisher should comply with the following traffic requirements:
- At least 5 million pageviews per month
- Minimum of 10 million ad impressions per month for at least 6 months
- No history of policy violations, unsafe content, or invalid traffic
- Updated ads.txt file with details of all buyers
Some ad networks require the publisher to have a sustained bounce rate of below 50% or a minimum of 1 million website visits per month.
3. Intuitive UI and UX
If the user experience (UX) design of your website is not up to the mark, not only ads on your website will look unappealing, but your content will get ignored too.
A study conducted by Forester reveals that an effective user interface (UI) has the potential to increase a website’s conversion rate by up to 200%. In comparison, an improved user experience (UX) design can elevate the conversion rate by an impressive 400%. This is what advertisers out there are looking for: a website that holds the power to convert users.
Wondering how to get your website’s UI and UX right? A seamless user experience involves creating an intuitive and enjoyable journey for website visitors, ensuring effortless navigation and engagement.
As a result, advertisers and publishers can enhance the appeal and effectiveness of ad placements, ultimately driving higher conversion rates and ad space sales.
4. Ad Servers
In today’s times – data is the new currency. So, the more data you have, the higher the chances of you bagging a lucrative deal from the advertisers. That being said, the best way to obtain those insights is through an ad server.
Publishers generally employ first-party ad servers to track the ad performance in real time. Mainly, the ad server is responsible for deciding which ad to show the visitor based on the available user data.
Advertisers rely on data to assess the success and impact of their ad campaigns. Providing detailed reports and analytics on ad performance metrics, such as impressions, click-through rates, conversion rates, and viewability, helps advertisers evaluate the effectiveness of their investment. Robust tracking and reporting capabilities can enhance the appeal of your ad inventory to potential advertisers.
5. Loyal Audience
Having a loyal audience of readers is a significant advantage that can bring reassurance and opportunities for monetization. Even websites with limited traffic can sell their ad inventory with the support of a loyal user base.
Engagement from readers can be assessed by various indicators, such as the frequency of site visits, clicks on links, and content sharing. However, it can sometimes be challenging to determine whether someone engaged due to encountering an advertisement or by genuine interest.
If you have a niche-specific website, advertisers who belong to that niche would be willing to pay more. It’s because they are looking for people who are already interested in what they have to offer.
6. Transparency
One factor that publishers should consider when planning to sell ad space is transparency. With digital frauds like domain spoofing and MFA (Made For Advertising) sites looming over the advertising industry, it becomes even more critical for publishers to maintain transparent communication with both advertisers and users. To achieve this, publishers can create a media kit that can include authors, content guidelines, or even website metrics.
Advertisers, being overcautious of spending their budget on deceptive websites, have their reservations. To ease their concerns, publishers can host ads.txt files (an IAB initiative) to publicly declare the companies who are legitimized vendors of the publisher’s ad inventory.
7. Legal Compliance
As a publisher planning to sell ad space to prospective advertisers, you must comply with various data privacy laws to protect the user’s privacy. Some include CCPA, GDPR, DPDPA, etc. Publishers are also required to adhere to the advertising standards set by the IAB or other governing institutions.
Apart from these, there are more compliances like intellectual property rights, consumer protection laws, and accessibility standards that a publisher is required to follow.
How to Set the Price of Your Ad Space?
Before setting the price of your ad space, you should take a thorough look into your website metrics. You can follow these steps to understand the metrics:
- Analyze your website audience to understand their interests, demographics, and behaviours to evaluate their value in the eyes of an advertiser.
- Assess the potential reach of your ad space by monitoring your traffic, page views, engagement rate, bounce rate, time spent on the website, etc.
Once you are done with auditing your website metrics, research your competitors who are operating in the same niche. Look at their website metrics and pricing for ad space.
Post this, select a pricing strategy:
- Cost-per-mille (CPM): Advertisers are charged for every thousand impressions on their ads that are displayed on your website. This is one of the most popular pricing strategies employed by publishers, especially those with high traffic volume.
- Cost-per-click (CPC): Publishers are paid every time a user from their website clicks on an ad. To utilize this payment model, analyze the heatmaps of your website to understand how a user interacts with your website.
- Cost-per-action (CPA): Publishers are paid every time a user completes an action on their website via the ad. These activities can either be lead generation-oriented or promote application/software.
- Flat rate: Here, publishers charge a flat fee on a monthly or yearly basis from advertisers for ad placements.
Top 5 ways to Sell Advertising Space on your Website
As we stated at the beginning of our blog, there are five effective ways to sell ad space on your website to an advertiser. Depending on your traffic volume and the scalability of the website, you can choose any of the following ad space monetization strategies.
1. Programmatic Advertising
Programmatic advertising is an automated mechanism to facilitate ad space transactions between the publisher and advertiser by employing sophisticated machine learning algorithms.
With programmatic advertising, you can streamline the ad space selling process and get real-time insights into ad performance. It is your best bet as a publisher if you are looking to maximize the revenue potential of your ad inventory.
Pros: Higher efficiency and better targeting through data-driven automation.
Cons: Requires some technical knowledge and can take a while to optimize.
If you are planning to opt for programmatic advertising, you can trust AdPushup with your ad space monetization strategy. Being a Google-certified Publishing Partner, we employ the most effective frameworks, like header bidding, to get you the best price for your ad inventory.
2. Sell Ad Space Directly
Another method to monetize ad space is to sell it directly. As the name suggests, direct ad sales is a one-on-one deal between publishers and advertisers, cutting any middleman—ad network, SSP, DSP, or any other ad agency, allowing publishers to sell ad space directly.
What are the benefits and considerations of selling ad space directly to advertisers?
Benefits:
- Better Ad Revenue due to the elimination of commission-charging intermediaries like ad exchanges or ad networks.
- Guaranteed Malware-free ads due to reduced chances of acquiring repackaged inventory or websites with spammy redirects.
- Have creative control over the ad creatives that will be shown on the website so, the contextual relevance of the ads can be checked to make sure it aligns with your user demographics.
Considerations:
- Requires considerable time and effort as you would need to have an in-house sales team to find advertisers, negotiate the ad space price, and manage campaigns.
- High technical expertise is required to integrate ads without any external support, which is generally provided when partnering with programmatic advertising platforms.
- The chances of redundant ad inventory are high, unlike with ad networks or ad exchanges.
Pros: Higher earning potential, complete control over ad placements and pricing.
Cons: Time-consuming to manage and requires outreach to potential advertisers.
3. Ad Networks
Ad networks act as a marketplace for advertisers. They consolidate the ad inventory from publishers and sell them to the advertisers. When an advertiser approaches an ad network, they match them with the most suitable ad inventory based on the advertiser’s requirements and charge a commission for their services.
For publishers planning to sell ad space, ad networks are a good starting point. They are generally free to join and take care of all your billings, guaranteeing you a steady income.
Pros: Competitive rates and often better suited for niche websites.
Cons: It may have higher traffic requirements or specific content standards.
Before looking elsewhere, you can consider AdPushup as your ad partner. We are in partnership with more than 30 demand partners to get you the best bid per impression.
4. Affiliate Marketing
You can join an affiliate program to market products on your websites. The process is straightforward – the publishers add the product link to their content to market it to their users. In return, the advertisers give a commission to the publishers upon sale.
As per performance-based marketing, there are four major compensation models that affiliate marketers follow:
- Pay-Per-Sale (PPS): When a product is sold through an affiliate link. The PPS model is ideal for driving product sales.
- Pay-Per-Lead (PPL): When a qualified lead is generated through an affiliate link by engaging in lead generation activities like filling out a form. This approach is most suitable for creating a potential customer interest list.
- Pay-Per-Click (PPC): Mainly for awareness, affiliates are paid when a user clicks on the link/ad. The PPC model is employed by companies looking to boost their website’s traffic volume.
- Pay-Per-Install (PPI): Affiliates earn when their referral installs an application or software through the affiliate link. Brands highly utilize the PPI model for promoting their apps/softwares.
Pros: Can offer higher earnings per conversion, fits well into content seamlessly.
Cons: Requires audience trust and careful product selection to avoid appearing too sales-oriented.
5. Native Advertising
Native advertising is increasingly becoming a preferred ad format for many publishers due to its ability to blend with the website’s layout seamlessly. According to the latest research, native advertising is set to touch $89 billion by 2029.
Native advertising is the latest way for advertisers to fight ad fatigue due to its ability to deliver personalized ads to the user. Taking the form of sponsored ads on a webpage, these ads are known to keep up with the user experience.
Pros: Higher user engagement since the ads align with the content format.
Cons: It can be difficult to distinguish from regular content, which may confuse users.
Do you plan to consider native advertising? Connect with AdPushup and experience first-hand effortless native advertising. We offer multiple implementations of native ads to drive your ad revenue without affecting the UI/UX.
Should I Sell Ad Space Directly or through an Ad Network?
The answer to this question entirely depends on the scalability of your website. While selling ad space through direct deals is more lucrative in terms of ad revenue, it comes with specific stipulations:
- You will need to have substantial monthly visits to your website (in millions, at least). This is so because if an advertiser is to pay a premium for your ad inventory, they would expect a good ROI in terms of impressions or even conversions.
- Finding the right advertiser for your website takes a considerable amount of resources in terms of a sales team, money, and time. It can take days or even months for your team to come across advertisers with whom your interests would align.
However, the requirements of major networks aren’t as stringent. Having consistent page views in thousands will make you eligible to join an ad network. Moreover, there are many ad networks with no minimum traffic requirements. On top of it, joining an ad network saves you the time and resources of finding and negotiating with various advertisers for a lucrative price.
Hence, direct deals are advisable for giant publishers who have the resources as well as the leverage to grab a profitable deal with the advertisers. For publishers who are still scaling their business, it’s advisable to join an ad network in the beginning. Later on, you can also opt for direct deals for your selected ad inventory.
Prerequisites for Selling Ad Space
To start with monetizing your ad space, you will require three resources at your disposal: A media kit, rate card, and spec card. These items will always show your website as business-ready, increasing your chances of landing a value-driven deal for your ad space.
1. Media Kit
A media kit is a webpage that presents information related to your traffic and audience. Use numbers and percentages to tell the potential reach of your website. Keep your Media Kit publicly accessible, design it to be presentable, and keep it factual.
The more insight you have on your audience, the better your appeal to advertisers. Here is an example of The Guardian’s media kit:
You can also check out this media kit by AdSpyGlass, which is entirely free and allows users to generate a custom media kit for direct traffic selling.
2. Rate Card
Next, to sell ad space, having a rate card is a must. A rate card can be a document or webpage listing the prices of all placements that you offer.
For advertisers who are considering your inventory, a rate card helps them align their budget with your price expectations. You can add all ad units and placements that you wish to put on for direct selling. This not only tells about your prices but also shows all the ad types your website deals in.
There’s no need for decorative jazz – just make it a clean and straightforward spreadsheet. Use MS Excel or similar applications. Here is an example of TIME’s rate card:
3. Spec Sheet
A spec sheet is another document that should include technical information and ‘terms and conditions’. You can mention the ad creative (size, type, and format) that you follow. It can also include third-party ad tag acceptability, flash or rich-media requirements, and more.
For inspiration, you can download one of Wall Street Journal’s spec sheets.
How to find Advertisers to Sell Ad Space?
One way to find advertisers for your website is by joining an ad network. But there are some other tips that you can follow to find advertisers for your ad space:
- Inspect the advertisers that are displaying ads on your competitors’ websites or the sites that are functioning within the same niche.
- Search industry-specific keywords and examine the advertisers that are displaying ads for those keywords.
- Create a separate page for advertising purposes with all your website metrics and pricing to show your website is business-ready.
These advertisers are already investing in your niche, so if they are displaying ads on other websites, they can do the same on yours, too.
Generate Maximum Ad Revenue from your Website – Where to start from?
Generating ad revenue requires a thorough strategy to sell ad space. As a publisher, depending on your goals and the ad inventory you have, you can either go for programmatic advertising, direct deals, or a combination of two.
You can sell ad space on programmatic advertising platforms like ad exchanges or via ad networks and keep the premium inventory for direct deals. But before deciding, do ask these questions:
- Do I want to advertise content-related products?
- To what extent do I want my revenue coming from programmatic means?
- Do I have a specific brand sponsor in mind for direct deals?
- Is affiliate marketing a viable option for my website?
- How do I want to deal with my premium inventory?
Answers to these questions will help you chart a perfect ad space monetization strategy. However, if this process is becoming too tedious for you, then you can always connect with AdPushup’s team of ad experts to guide you towards the perfect optimization strategy. Connect here!
Conclusion
Selling ad space provides publishers with an immense opportunity to monetize their websites by leveraging their traffic volume. But, it is essential to have a robust ad space monetization strategy in place to make the most out of your ad inventory.
In this blog, we discussed five effective ways to sell ad space. But which one to choose entirely depends on your long-term goals. No method is perfect; each has its upsides and downsides. However, the decision depends on the level of control you want on the ad placement process.
It becomes essential for publishers to give a thorough thought to the objectives they plan to achieve and the amount of time they are ready to invest before zeroing in on a strategy.
Frequently Asked Questions on Selling Ad Space
Publishers and advertisers directly negotiate ad sales, eliminating any middlemen, whether it’s an ad network, SSP, DSP, or any other ad agency. In the early days of advertising, publishers could only earn revenue through direct deals.
The three types of direct selling are single-level direct, party-plan, and multi-level marketing. Pyramid schemes are different from multi-level marketing and are illegal.
Generally speaking, a website with 500,000 monthly page views can expect to earn between $1,000 and $5,000 per month, while a site with 1 million monthly page views can earn between $2,500 and $25,000 per month. However, the amount of money you can make from selling ad space on your website depends greatly on the website traffic, the niche you serve, and the ad network you use.
Digital ad space costs between $100 and $10,000 a month on average, with cost per click (CPC) varying from $0.11 to $0.50. depending on the platform, industry, and targeting. In highly competitive industries like law or insurance, CPCs can be as high as $50 per click.
Follow these steps to start selling your ad space effectively:
– Optimize your website for a seamless experience, focusing on user interface, loading time, and mobile responsiveness.
– Identify high-traffic pages to maximize impressions and ad revenue.
– Choose and test ad formats to find what works best without impacting loading time.
– Analyze your site metrics to determine the best monetization strategy.
– Use payment models like CPC or CPM to set competitive prices for your ad inventory.