TommyCarey
Level X3
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I actually get the question a lot regarding banner ad placement. To be exact, I get "What placement should I buy and what's a good price?" And that really depends on the website and your niche. If you're marketing a computer company and you put an ad on an iPhone website, you won't get a lot of conversions, if any. I know that an iPhone is pretty much a mini computer, but people who are searching for iPhone stuff aren't searching for a computer to buy. Pick the right websites to advertise on and you'll be a happier person when you start to get conversions lol.
I'll use one of my own niches as an example. I'm in the SEO and Online Marketing niche so I usually advertise on marketing forums and blogs to make more sales from banner advertising. I won't advertise on a make money online blog or forum because those people want to make money, they don't want to spend it on my services lol 
Good ads vs. Dead/Bad ads
Now that you understand a little bit of how to pick the websites to advertise on, you need to know what's a good ad and what's an ad to avoid.
Good ads come in all shapes, sizes and prices. Usually the higher the traffic is for a website, the more the ad will cost, so it's vital to find those hidden gems where people don't know what to price their ads at. I've found a few in my life and paid $30 to $50 a month for them and made $1,000+ per month off of the ad. Over time the ad fizzles out because your competitors notice you're advertising there and they contact the website owner to get their own ad up and running.
Here's a basic breakdown for determining a good price
An equation I use to figure out if an ad is good is to multiply the impressions the ad is supposedly getting by 0.01 (That's 1%) and that will give me an estimate on how many clicks I'll get. Then I'll take the estimated amount of clicks and multiply that by another 0.01 (another 1%) and get an estimated amount of sales. I'll then tally up how much I would make in profit and if my profit is close to the price of the ad or a little higher, I'll buy it.
If the website claims they're getting 100,000 views and they want $50 for an ad, I'll put that into my math problem. So 100,000x0.01 = 1,000 then 1,000x0.01 = 10. If I can't profit, or come close to, $50 in 10 sales then I won't buy the ad spot. Normally with 10 sales you should be able to get close to $50, but not everyone sells items or services over $5.
Do your own research
I'll also do my own background check on the website to see if they amount of traffic they claim to be getting is accurate. I'll check them on various websites and if they come close to the amount advertised, and also passed my test, I'll buy right away. I actually just bought 3 ads for a total of $80 because they blew my math problem out of the water. I don't even have banners made for the spots but I wanted to lock the spot for when I get them done
Now you'll have to avoid some of those ad spots that are saying they get 10,000 impressions but they're trying to sell you an ad spot for $50 to $100 a month. That's just too much to risk because the sales coming in probably won't cover the amount you're spending.
Be smart, make money, don't give in to people saying you'll see thousands of dollars in profit per month when you doubt it. If it's too good to be true, it probably is. Use math, it's your friend in these situations lol
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Lynne
Do you have any good suggestions for finding websites to advertise on? Right now I just wouldn't know where to start looking for a good website to advertise on. Thanks Razzy, geez this has been very helpful. I am interested in starting paid advertising campaigns and I am unsure about trying Google Adwords or Bing Advertising again so this came at a really good time. I really appreciate the formula for working out my possible ROI. Do you have any good suggestions for finding websites to advertise on? Right now I just wouldn't know where to start looking for a good website to advertise on.
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