Re: Best Ad Network?

From: Bob Stewart <bobstewart_at_gardenweb.com>
Date: Tue 04 Mar 2003 11:59:34 -0600

Larry F. Byard wrote:

>Actually, it is much less than $1.00/CPM because some ad networks have
>amassed a lot more inventory then they intend to serve paying banners. I
>have good reason and some proof to believe that they have server algorithms
>setup based on, among other things CTRs and the number impressions per
>unique IP, to pick 'n choose which impressions/sites they serve what. Be
>it an accepted practice (I think it is less than honest) or not, it and low
>CPM rates are a gross rip-off of webmasters by some ad networks. Larry

I don't know what is less than honest about what you describe.
The way most of the ad networks work is they track users
through cookies. They then show them ads from their inventory
highest CPM first, but trying to spread each ad among as many
discrete users as possible. The first ad a person sees will
likely be a relatively high CPM, if they look at 10 pages, most
likely the ad network will be showing them defaults or CPC/CPA
ads after 4-5, or CPM ads of a very low rate.

That's really just optimization. If I buy a million ads from a
network, I want them shown to as many different people as
possible. Wouldn't you?

The ad networks need vast numbers of unique users, but only a
few page views per user. So yes, they have every reason to
have as many sites in the mix as possible.

As to rates, $1 CPM for a banner ad served without any
targeting is really about right and even if big brand
advertisers really move onto the Web, I doubt those ads will
ever reach much higher. A one inch ad in a national magazine
often goes for less than $1CPM, and I think they're pretty
comparable. The ad networks have never been very succesful at
selling targeted ads.

No one is getting ripped off here. You just can't reasonably
count on the ad networks for selling anything but excess
inventory that would have gone unsold. And even then, many of
them aren't worth the time of setting up the links. But you
can be sure they too wish they had more ads to show at higher
CPMs.

You can't really look to someone else to provide a revenue
model for your site.

 Bob Stewart

  GardenWeb

**PLEASE NOTE NEW ADDRESS: bobstewart_at_gardenweb.com

 




Received on Tue Mar 04 2003 - 11:59:34 CST