Re: CPM isn't dead, it's just sick

From: Neven Prasnikar [ART PLUS] <artplus_at_artplus.hr>
Date: Tue 27 Nov 2001 19:48:21 -0500

ANDY BOURLAND <andybourland_at_yahoo.com> WROTE:

> Clearly, you've never worked as a publisher, Brad... nor
> have you ever seen many CPA deals float across your desk.
> They aren't moneymakers, I assure you.

I don't really understand what's the fuss about that CPM/A
thing.

I've worked as a publisher Andy. Both off-line and online.
I was publisher of magazines like BYTE Croatia (McGraw-Hill
Licensee), ComputerWorld Croatia (IDG Lic.) and my own
little "kid" MIPS... As far as online publishing goes I own
about a million impressions a month on a local news portal
(which is a HUGE inventory where I live). My advertisers
include Airline company and national GSM operator...

At the same time I am an advertiser! (I used to sell books
online and off-line few years ago. Today my mainstream
business is software and software advertising specialties
production.)

I guess this gives me a unique (well, to some extent)
perspective where I can understand both sides of the fence...

And I do see a "fence" here!

I think that is the main problem--the fence!

You cannot push the publishers only logic to advertising...
Nor can you push advertisers only perspective...

We're all in it for money--this should be a partnership.

If the partnership is hard to achieve, then at least both
sides should try to be as objective as possible and reach
some equilibrium.

If CPA doesn't work for the publisher of some site why
then would CPM work for the advertiser on the same site?

I am not saying I am all for CPA as a publisher. Hell, no!
Too complicated for me and not all products/services can
be sold that way. Too complicated, that's all!

Then again, as an advertiser I sure DO like it!

I see it as a sales channel and pay 50% to publishers who
are interested in collaboration. (Software, PIM priced at
$29.95)

Now, if you as a publisher are not interested in working
with me based on a 50:50 split, I am not interested in
advertising on your sites either... simple as that.


> It's perfect for the ADVERTISER, NOT THE PUBLISHER.
> Advertiser assumes no cost or risk until a sale is made.
> Publisher carries the entire burden of risk and
> expense.

Yes, the publisher carries the risk! True!

But who knows his own public better to decide if my
product is suitable to be sold on his site? Am I supposed
to pay blindfolded and see what happens? Why (if I can get
CPA)?

Also, I am paying 50% commission on generated sales.

If that's not enough for the publisher, that's a clear
sign I cannot reach ROI buying ads on his site.

> I dare you to put your money where your mouth is, Brad...if
> you have the guts! Develop a quality content site, grow the
> readership and maintain profitability soley on CPA deals.
> Let's see how smart you really are.

Andy, there are people who earn money from simple affiliate
deals. CPA model can work for a publisher as well as CPM can.
It's only a matter of business structure. What can work for
some businesses can be a disaster for another.


> <clue phone ringing> Hello Brad? Ring! Ring! People don't
> buy $10K or $50K products on the basis of clicking a banner
> on line, dude. They THINK before they buy, which means that
> they will most likely do a lot of research, comparisons, etc
> before they go back to the site and buy. Meaning that the
> advertiser won't be paying the 8% commission -- another
> reason why CPA sucks for the publisher and is wonderful for
> the advertiser.

True to some extent.

I went online to choose a car but I eventually went to the
store to try it and buy it! This publisher would not earn CPA
points...

That doesn't mean CPA doesn't work!

If I would be able to "order" a test ride through the
publishers site ad link, the seller would know who to credit
for the sales...

Also, if the publisher offered me a $XXX bonus to make sure
I'll place some sort of promotional code somewhere when I buy
the car I would make sure that the publisher gets the credit
for my purchase (okay, who cares for the publisher, I would
reach out to get my $XXX).

See...

I just gave you a business idea for successful CPA deal among
the publisher (say it's an car related portal) and a car
manufacturer.

 
> Again, I challenge you to launch a quality content
> site, build a good audience, and maintain it over
> the long run -- profitably -- based soley on CPA deals.
> I dare you!

I dare you to put the money where your mouth (fingers) are...

I'll build a business plan that you find a funding for.
If I make it big, I'll keep the project--you're out!
If it fails, you can keep it ;-)

Am I smart or what :-)

Neven Prasnikar
artplus_at_artplus.hr
http://www.artplus.hr
http://www.softwareadspecialties.com
Software Advertising Specialties
Promotional Gifts for The 21.st Century






Received on Tue Nov 27 2001 - 18:48:21 CST