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Re: Re: Ouch! - From 60% to 40%

From: John Nesbit <John_at_shagmail.com>
Date: Thu 11 Jan 2001 10:21:52 -0500

BRANDI JASMINE <brandi_at_brandijasmine.com> WROTE:
> Also I am sure this falls under "FAQ" - but does anyone
> know what the going rates for banner ads are at
> present? I have been quoted everywhere from $5 to $20
> CPM, but was looking for a more definitive source.

Here is something from a buyers point of view and what
is REALLY happening with banner prices.

I recently saw a "report" from Engage on the average
banner CPM online. They gleefully showed it hovering
around $30 or so. That is the most ridiculous piece of
self delusion I have seen in quite some time. Their
one saving caveat was that their numbers were based on
rate cards found online. That may be the rate cards
but I think that very few advertisers are buying at
even a tenth that rate.

In early 2000 I was buying $50,000 blocks of banner ads
at around $5 CPM (optimized), however since then I have
moved away from banners as they have become less and
less effective for us. The last couple runs I did were
with three large banner networks and ALL were at CPMs
of $1.00 or less (one was as low as .35 CPM!). Some of
these companies had rate cards of $30 or more but were
very pleased to take even a small buy at a very low
CPM. There is desperation out there as banner CPMs are
sliding down into some kind of abyss. Too much supply
and too little demand for marginal results.

So while the rate cards are high online - I think it is
all propaganda to make their investors feel better.
When the rubber meets the road the price is
drastically lower.

Sorry If I hurt anyone's feelings or burst any bubbles
but as a buyer that is what the landscape looks like
to me.

Warmest Regards,

John Nesbit
Shagmail.com
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Received on Thu Jan 11 2001 - 09:21:52 CST


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