Re: Going CPM Rates

From: Jim Reardon <jim_at_amusive.com>
Date: Mon 17 Dec 2001 11:50:16 -0500

On 12/14/2001 "Gordon Robert" <bgordon100_at_hotmail.com> wrote:

> Scott Brew <SCOTT_at_ADTEGRITY.COM> wrote:
>
> >It's a tough market, but we've got plenty of
> >publishers who are succeeding at current market
> >rates (sub $1 CPM).
>
>Name One...

First, it depends on your meaning of success. I
know a lot of digital publishers that don't mind
breaking even. Many of these publishers consider
covering their bandwidth bill a success. Others
with loftier goals who want a profit set their
definition of success a little differently.

Services such as my SiteGadgets.com, an online web
service provider, can succeed at $1 CPM or less.
Thanks to the sharp decline in the cost of
bandwidth and processing power, $1 CPM or
thereabouts provides not only support but also a
healthy income stream.

The sad part is it's difficult to even get $1 CPM
anymore. When CPM rates drop below a dollar, say,
to $.25 or less... it becomes impossible to
support any service. It becomes more costly to
serve a page than what the revenue pays for.

Even with this in mind though... $1 CPM still
might not be fair to publishers. The amount that
will make a publisher a success, and what an ad
space is worth, are two very different things, and
two things that vary essentially from one publisher
to the next.

--
  Jim Reardon <jim_at_amusive.com>
  what do you want for free? http://www.freecenter.com/
  free forums, polls, and more! http://www.sitegadgets.com/?sig





Received on Mon Dec 17 2001 - 10:50:16 CST