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Re: Ad Network Revenue

From: Allen Wyke <allen_wyke_at_engage.com>
Date: Mon 09 Oct 2000 11:39:27 -0500

JAMES N <buzz3000_at_lycos.com> WROTE:
> Does anyone have experience with what kind of average
> CPMs Doubleclick or 24/7 will pay a smaller site like
> mine? My site is technology oriented, so I'd imagine I
> might get more targeted, higher CPM ads through the
> networks
 
TO WHICH COLE SPALDING <scole_at_spinbox.com> REPLIED:
> While it is a great idea for some publishers to go to
> an agency to sell their inventory, with a targeted site
> such as your you may want to consider selling your
> inventory yourself, hiring somebody, or joining a niche
> network where the other sites have the same type of
> audience and content as you and then approaching
> advertisers. With 2 million page views per month you
> could be profitable if you do not have to give up a
> large percentage of your ad revenue to an agency.

I echo the message that Cole has said here as well.
Completely outsourced, while it will get you off the
ground, can cut deeply into your revenues. You may not
see this immediately and you may not see it at all, but
if you do the math you will see. I often explain it
using a taxi analogy. If you only use it once or twice
a week, then it makes sense over buying a car. But, if
you use it more than that - lets say once a day (his 2M
a day is a pretty good number too) - , then it will
cost you more - and certainly a LOT more in the long
run.

It use to be hard to find people that understood how to
run and setup ad software in house, so it was more
expensive to do this from a people perspective.
However, and especially in the tech industry, the
number of people that have experience with this has
grown greatly, and more than likely they can be hired
away :)

Allen





Received on Mon Oct 09 2000 - 11:39:27 CDT


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