BOB GORDON <bgordon_at_theautochannel.com> WROTE:
>Are You kidding me ...if you run 1 million impressions
>on a site at $1 CPM the site publisher will get a
>whopping $1000...this is the problem with internet
>advertising...
Here is another take on this. What is the cost to the
publisher for those 1MM impressions? If you get a 10% net
profit per year you are doing better than the large majority
of companies. My guess is that at $1 CPM an efficient,
popular publisher could be making a lot of money.
Re Terrell Mitchell's question, "Is the Internet good for
business?", my answer is that it certainly can be. The
problem is the age-old, "What is a tool good for?" question.
It depends on purpose and user among other things. Applying
the question more specifically to advertising, there is no
doubt in my mind that the Internet can be much more
efficient AND effective then is currently the case, which
relates back to costs and profits.
To me, one of the issues re debate about CPA, CPM, etc. is
the fact that advertising systems are as of yet still set up
in pretty inefficient ways and are not taking advantage of
what (eventually) can be done with the Internet. Another
issue is a common mistake people make with businesses in not
separating out R&D from operating costs. Then they end up
with the wrong financial analysis and conclusions.
Bottom line is that the potential efficiencies are
phenomenal, but the large majority of humans are actually
not that good at exploiting potential that quickly. For
that matter it takes time anyway.
Jim Namaste
Director of Marketing and R&D
NetPartners Marketing Corporation
jim.namaste_at_netpartners-marketing.com
http://www.netpartners-marketing.com
Received on Wed Dec 05 2001 - 07:36:28 CST
