Re: Brother buys all of Smallbusinessdepot.com's ad space!

From: Richard Kies <rkies_at_aginfonet.com>
Date: Thu 26 Oct 2000 14:03:52 -0500

RAMON RAY <ramon_at_smallbiztechnology.com> WROTE:
> There's more juice (a lot of juice) in the pure
> "content" Web publishing industry bucket!
>
> On businesswire today, SmallBusinessDepot.com Signs
> First-Ever Total Site Sponsorship with Brother
> International Corp. (Business Wire)

Hi,

A few thoughts on this...firstly, from a strategic
point of view, an exclusive deal like this has
advantages and disadvantages. Having sold-out
inventory can provide a secure cash flow, as well as
lower sales costs. It's important, however, that this
exclusivity provides a "premium" for the site
publisher, to cover potential lost future revenue from
an inability to increase ad rates. Also, depending on
a single source of advertising/sponsorship revenue can
be a high-risk strategy if that sponsor decides not to
renew down the road. I'd want at least a 3-6 month
"notice of termination" clause, in case I had to find
another sole sponsor like this.

On the tactical side, I noticed that all the pages on
the site are currently running the exact same banner
ad...based on my experience with long-term ad
placements by sponsors, I'd suggest advising the
sponsor to plan periodic updates to the creative. This
will help keep response rates up and prevent user
"fatigue" from seeing the same ad repeatedly.

Thanks for allowig me to post this unsolicited advice!

Cheers,

Richard Kies

Manager, Communications & P.R. Direct: (306) 789-2908
Aginfonet.com Fax: (306) 789-7630
www.aginfonet.com Toll-Free: (888) 789-5153
rkies_at_aginfonet.com





Received on Thu Oct 26 2000 - 14:03:52 CDT