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NONE: Re: Getting the "big guys" to lower their prices

Re: Getting the "big guys" to lower their prices

erik kraft (erik_at_ensuing.com)
Wed, 17 Jul 96 11:23:57 -0700

In online-ads, Volume 1, #32:
On Tue, 16 Jul 1996, rhoy_at_tenagra.com wrote:
>
>I've always read that the actual price advertisers are paying for
>placements on major sites (Yahoo, Infoseek, Excite, etc.) is less than the
>price these sites quote.
>
>Has anyone on the list been involved in negotiating such an ad buy? And
>what was the "magic phrase" that got these guys to come down in their
>price?

The adverting people that work at the larger Internet companies usually come
from the 'normal' advertising world. My experience is from the television
world, but they seem to apply in every medium. Here are some things to keep
in mind:

1. There is more then one "Rate Card". The rate card lists some details
about ad packages and their prices. Different rate cards are given to
different people. In TV and radio, better rate cards are given to larger and
more professional companies. Most online companies don't seem to do this.

2. Almost no one pays the prices listed on the rate card. Everything in
life, especially ad rates, are negotiable. Try it. This works well for
online ads. The magic phrase is "Well, I looked at your rate card and it
seems to high. What is the current discount off of rate?". You should be
able to get 25% off easily.

3. Ratings are exaggerated. (Shock!) If you show some disbelieve about the
ratings they are claiming (or in this case, hits or eyeball counts), you will
eventually be offered a lower rate. Online companies don't want to admit
their 'hits' aren't accurate. TV and radio stations just don't care.

4. In local tv markets it is possible to play one station off the other.
("Well, channel 8 is offering a similar share time slot with a lower cost.
What can you do for me?"). This may or may not work for online ads. I
haven't tried this...yet.

5. Online companies are moving to outsource their ad sales. The outside
companies are given a lot of leeway wrt ad pricing.

---
erik kraft
erik_at_ensuing.com      [ NeXTMail and MIME okay ]


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