Re: Best Ad Network?

From: Jeff Howes <jeffh_at_bannerspace.com>
Date: Mon 14 Apr 2003 09:06:15 -0600

On Tue 4 Mar 2003, Bob Gordon wrote:

> Excuse me...comparing or even mentioning a 1 inch magazine ad that most
> likely WILL NOT BE SEEN OR NOTED by 99% of a magazines readers, to an ad
> that is not only GUARANTEED TO BE SEEN but will not be paid for until
> and unless it is acted upon, is the mentality (or lack of) that is the
> root cause for under pricing the advertising on the net.
>
> Although I do agree that optimization is a positive extension of sales
> service and keeping the buyer happy is paramount...there should be some
> upside for the publisher...pricing hard earned audience at a buck a
> thousand clicks is unbelievable, a fraction of a penny a click...are you
> kidding me????
>
> Do publishers get to see what the advertiser really pays per click?
>
> This whole thread began with how ludicrous it is for a publisher to
> allow inventory to be bought for a buck CPM for ROS,
> and these network guys are talking a buck a thousand
> clickthroughs...what's next, should the publisher pay the advertiser for
> the privilege of running their ads?
>

Sorry for bringing up this old issue, but I couldn't resist
throwing in my two cents.

Several have already pointed out your misunderstanding of
"CPM", so I will not dwell on that.

I do agree with you that ad rates are very low right now,
and that it is very difficult to make money as a publisher,
especially if your entire business model is based on your
ad revenue stream.

However, if you believe that online advertising is such a
"steal" for the advertisers at current rates... I've got
plenty of $1 CPM for you to BUY. I assume you are doing
massive amounts of advertising for your site, given the
all "free" ad space out there.

You see, there is another side to this... simple economics.
If you put yourself in the shoes of the online marketer,
you want to see some return on the money you invest in
advertising. The fair price (for anything) is what someone
is willing to pay for it.

This is not to say that I agree with the degree of
accountability some advertisers are expecting from publishers
these days. For example, the "CPA" model is ridiculous and
has nothing to do with advertising. If you want to blast
something, blast that.

On the other hand, paying based on the number of impressions
is fair, and the rate paid is determined by the market and
perceived value to the buyer. Even if a network or rep
firm DOES have the publisher's best interest in mind, at some
point, a decision has to be made to take it or leave it...
some revenue or no revenue. Most often, this decision is
ultimately the end publisher's to make. While I am not
suggesting that everyone throw their rate card out the window,
I do not think that discounting your rates while there is
low demand will not, in any way, affect your ability to sell
at higher rates when demand rises.

Jeff Howes
President/CEO
BannerSpace.com, Inc.
http://www.bannerspace.com





Received on Mon Apr 14 2003 - 10:06:15 CDT