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Re: CJ.com (and other cpa deals)

From: Janet Attard <attard_at_businessknowhow.com>
Date: Wed 21 Nov 2001 15:48:18 -0500

MARCO JANECZEK <info_at_webadvertising.ca> WROTE:

> Has anyone experience with CJ.com for Merchants?
> I mean does it increase sales dramatically ?
>
> And if so does it increase sales for companies
> located in Canada?

It would be interesting to hear if there have been
any changes in the effectiveness for advertisers
for third party affiliate programs such as CJ.
I've taken all third-party cpa ads off our site.
We are only a small publisher, so what one
publisher does isn't the issue here. I'm just
curious if other small publishers are also
realizing that it makes no sense to give away what
amounts to free advertising. Actually, instead of
the "I've got a deal for you" or "partnership" ads
that used to come through asking us to take CPA
deals, I'm seeing more ad networks and private
publishers asking if we take them. Which is also
why I was wondering if perhaps there's a trend
in the works.

Any ads going on my site these days will be either
because they pay a reasonable cpm fee, or are our
house ads, or are affiliate deals we've
negotiated with the advertiser and for which I
wind up clearing a certain minimum per month, or
has some other hook in it that for some reason we
think benefits our site.

The reason is simple: there is no way cpa
advertising can ever support a site like ours.
It doesn't take too much math to see why CPA doesn't
work from the publisher's standpoint either. Forget
the fact that someone might see the ad on several
different sites before they click through.
(branding)..Just work the numbers for one site.

Assuming a close match and a good offer and say a
cpa of even $5.00 (most are WAY under that).
Assume you have a click through rate of 1% on the
banner. And a 1% conversion rate.

If you deliver 100,000 ad impressions, you'd have
1000 click throughs. If there were 1% conversion
rate, you'd have 10 sales. At $5 per sale, all
you'd get for delivering 100,000 impressions is
$50. And that's only if you actually got a 1%
click through and 1% conversion. I'd hazard a
guess that most sites don't get any where near 1%
clickthrough for the majority of the ads on the
sites. Most probably are getting under .5%
clickthrough for ads that are slightly targeted
to their sites. And how good the conversion rate
is, is a function of how good the copy and offer
is after they click through.

Bottom line, is that you'd make a lot more money
getting on a NYC subway with a cup that said Feed
My DotCom than you will with CPA ads.

(Hey, if anyone tries that cup trick, I want a
piece of the action <grin>)

But (sorry for the rant) .. what I really am curious
about is whether indeed there are fewer publishers
accepting cpa, (or more - maybe I'm the only
ornery one), and whether advertisers are finding
less benefit from the programs. Or if there has
been no change or if advertisers really do still
do well from them.

--Janet Attard
Author, The Home Office and Small Business Answer Book
Business Know-How(r) - small business, career and
self-employment resources
Providing content to the online world since 1988
http://www.businessknowhow.com and
http://www.careerknowhow.com






Received on Wed Nov 21 2001 - 14:48:18 CST


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