Innovative Advertising Web Site Launched

IBTimes AdCubes is a new advertising web site offering 59x59 pixel banners that link to the advertiser's website. The site offers each advertisement cube for $1. Advertisers pay an increasing amount for each AdCube sold by IBTimes. For each ad that is sold, the price increases by $1. So if 100 ads have been sold, then the next advertiser would pay $101 for the next AdCube.

The rationale behind the increasing price is that as visitors visit the site, they will purchase the ads if they are cheap. As more and more people visit the site, through promotions or word-of-mouth, the ads naturally become more valuable. As the ads gain value, the $1 increase in each ad sold will correspond roughly with the increase in interest. As long as the site continues to grow in cubes and in traffic, advertisers will find an increasing return on investment.

In the 6 days since the AdCubes site has been launched, over two dozens advertisers have signed up, paying between $1 and $24 for the privilege of owning a cube. The cost per click on each cube varies, but with $278 worth of ads sold, and 3,142 clicks delivered so far, each click is currently costing an average of 8 cents.

Interestingly, as the cost of the AdCubes increase, the site owners do not expect demand to taper off. Mark Li, one of the founders of AdCubes, explains why: "People are curious how other people make money. When they see someone earning $101, $102, $103 for a tiny advertisement on a site anybody could make, their interest is piqued. They come back often, wondering how much people are willing to pay for the ad. As the price goes up, the more and more the person will return, just to see when the price will level off. Advertisers get a great deal – whatever amount they pay is justified because the price itself is the novelty that drives the site traffic."