Re: Ouch! - From 60% to 40%
BRENDAN KING <Bking_at_point2.com> WROTE:
> What is REALLY happening with banner prices can
> be directly correlated to the value that they provide.
Brendan, you have hit the nail on the head. Banner
advertising is failing because most advertising is RON
or untargeted and so web users have become accustomed
to not seeing relevant advertising and are ignoring
them.
The main reason RON advertising is so prevalent is
targeted advertising is many times more expensive than
RON advertising. At the same time, the buying process
doesn't make it cost effective to test highly targeted
space - so many advertisers are reluctant to try that
space.
We have introduced a solution that we hope will solve
some of these problems and make it more likely that web
users will see advertising that is relevant to the
content they are viewing. We have introduced a
marketplace of banner ad space consisting of hundreds
of categories. We allow advertisers to cost-effectively
run test campaigns on any category - eliminating the
risk of trying highly targeted space. In time, we hope
to have a thriving marketplace that attracts
advertisers interested in targeting highly targeted
audiences. And as you say, when advertising is
relevant, click-thrus and CPMs should be higher.
Dilip DaSilva
http://www.tribalfusion.com
Received on Fri Jan 19 2001 - 13:33:27 CST
