Re: Ad pricing

From: Stuart Hochwert <shochwert_at_myfree.com>
Date: Wed 26 Apr 2000 15:40:32 -0500

JAMES INNINGS WROTE:
> How does an advertising company decide they are
> reciving fair value or better than fair value for an
> online ad? How is pricing determined?

We buy banner and text advertising in e-mail
newsletters. For us, we are looking to pay a target
amount per newsletter. Example: We offer 14
newsletters. We will pay $.15 per newsletter sign-up.
If people sign-up for 3, that is worth to us $.45
total. Sign-up is easy - just an e-mail address.

If we do a banner ad, we will do on a CPM ($4/M
example) or CPA (cost per action basis). Even if done
of CPM, we still want to net out our target CPA. Thus,
if banner is $4/M and we get a 2% click through (20
visitors) and 3 people do sign up. That is worth to us
only $1.35, less than the $4/M we paid in this example.

Whether it be radio, TV, print or magazines, even if it
is sold on a CPM basis, most direct marketers, like our
firm, translate the CPM to a CPA basis.

Hope this helps.
------------------------------------------
Stuart Hochwert
shochwert_at_myfree.com
MyFree.com, Inc. www.myfree.com
3400 Dundee Road, Suite 236 Northbrook, IL 60062
339th Busiest Web Site (PC Data Online, 03/00)
Over 1,100,000 opt-in newsletter subscribers
847-205-9320 Main 847-205-9340 Fax





Received on Wed Apr 26 2000 - 15:40:32 CDT