Re: Next Generation Pricing Models

From: Mauricio Macedo <mauricio_at_iron.com.br>
Date: Fri 23 Nov 2001 08:22:47 -0500

ANDY BOURLAND <andybourland_at_yahoo.com> WROTE:
>Perhaps where we need to go in doing a complete reset in
>pricing models is to abandon the "impressions" model
>completely. In most other media, aren't pricing models
>based upon audience -- NOT on the number of pages they
>view, commercials they see, hear or pass by?
>
>Each session has its own advertiser. A visitor is not
>experiencing a zillion ads competing for his/her attention.

I agree with the move to sell audience, because even
if with all the technology existent and the possibility that
every ad is targetted at me, it just isn't possible that I
could react to 50 different banners shown in just a hour
browsing pages.

<shameless plug>
I started Netmmercial, thinking about doing something better
than banner ads, using rich media and full page browser. It
was our intent to show a different ad at every 4 minutes, but
as the majority of user sessions don't last that long, we
changed it to once per user session.
</shameless plug>

There is only one big problem with the change to selling
sessions: imagine your website has 10 million monthly pageviews.
Well, at $20 CPM, you're sitting on a possible pile of cash
ammounting to 10,000 M * $20 = $200,000 monthly, at least
according to your business plan and get-rich-someday dreams.

Now if we work with the average of 5 pages per user session,
we're talking about 2 million sessions, and if you add the
or 66,667 sessions per day. If you try to sell at $30 CPM
the sessions of each day (a good/easy to manage idea, the
advertiser "sponsor the day"), you have 66 M * $30 = ~$2,000
per day or possible 60,000 monthly.

What I'm trying to say is that a normal website with a million
pageviews would have an audience of only six thousand users
per day, which would show to advertisers that it's possibly
not worth the effort advertising. This is a risk smaller
websites run, when they use measures of other media. For
a radio station is doesn't matter how many "unique listeners"
they have per month, but the daily number os "listener sessions".

Best regards,
Mauricio Macedo
Sales Manager
http://www.netmmercial.com - full browser banners made easy






Received on Fri Nov 23 2001 - 07:22:47 CST