Page 222 - Electronic Commerce

Marketing on the Web

rates range between $1 and $15 CPM. Exclusive site sponsorships can be more expensive,
sometimes hitting $100 CPM. And context-related text ads on sites with demographics
that are very good for the particular targeted text ad can reach $500 CPM.
Rates have varied throughout the history of the Web. As the online advertising market
grew, rates slowly climbed, peaking in the late 1990s, when they ranged from $5 to $100.
After that time, they gradually drifted downward to their current levels. Figure 4-8 shows 197
a comparison of CPM rates for banner ads and other Web advertising media to CPM rates
for advertising placed in traditional media outlets.

Cost per
Medium Description Audience Size Thousand (CPM)
Network television 30-second commercial 10 million–50 million $5–$50

Local television 30-second commercial 50,000–2 million $3–$25
station
Cable television 30-second commercial 100,000–500,000 $8–$20

Radio 60-second commercial 50,000–2 million $1–$15
Major metro Full-page ad 100,000–600,000 $5–$50
newspaper

Regional edition of Full-page ad 50,000–900,000 $40–$100
a national magazine
Local magazine Full-page ad 3000–80,000 $100–$140

Direct mail coupon Mailed in letter-sized 10,000–200,000 $15–$20
pack envelope
Billboard Highway billboard 100,000–3 million $1–$3

World Wide Web Banner ad 10,000–50 million $1–$15
World Wide Web Rich media ad 10,000–50 million $18–$50
World Wide Web Text ad 10,000–50 million $1–$500

World Wide Web Site sponsorship 10,000–50 million $60–$100
(exclusive)
World Wide Web Site sponsorship 10,000–50 million $20–$50
(shared) Learning
Cengage
Targeted e-mail Single mailing 10,000–10 million $5–$15

2015
Mobile ads App-embedded 10,000–5 million $1–$5
©
FIGURE 4-8 CPM rates for advertising in various media

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