Is $0.05 too much or not enough?

From: Arnaud De Bruyn <adebruyn_at_marketing-models.com>
Date: Wed 28 Nov 2001 10:22:41 -0500

Hello,

I was looking for some "sponsored link" offers from
the big players. The first one I found was Google.com,
$0.05 per exposure to any relevant search query. The
second was Overture.com (AOL, Lycos, Alta Vista),
minimum bid of $0.05 per actual click on the sponsored
link. Neither google nor overture target a specific
audience, they are just search engines that promote
some links based on relevant search queries. Period.
Let's say I have a click-through rate of 5% for a
sponsored link (let's be very optimistic), that means
an actual visitor costs me about $1 on Google and
$0.05 on AOL, Lycos or Alta Vista. Overture.com
requires a minimum monthly fee, but it's not really
significant...

Maybe I just don't get it, but a 1:20 price ratio seems
a little bit too much to be honest. Where is the catch?
Any insights?

Best regards,
Arnaud.
-----
Arnaud De Bruyn
The Pennsylvania State University
Smeal College of Business Administration
701-L Business Administration Building
State College, PA 16802
United States of America

Visit http://www.marketing-models.com





Received on Wed Nov 28 2001 - 09:22:41 CST