NONE: Re: Getting the "big guys" to lower their prices
Re: Getting the "big guys" to lower their prices
Graham Hansell (gdh_at_sitelynx.netkonect.co.uk)
Thu, 18 Jul 1996 11:03:36 +0100
Hello all thousand plus of us on this list,
>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?
Well I thought as this is my business and has been for the last 8 years I
should put in my thoughts.
For a start there is no "magic phrase" which you can you use (except please
and thank you) to break from rate card. In fact it can't normally be done in
just one contact and certainly isn't just done by pure agression.
When you read that the advertisers are paying less than rate card for space
it is because of three things:
1) Intelligence - when you are going to buy space you should know what the
competitors to the site have on offer in terms of price, deals and stats to
prove that they can achieve what you want.
You also need to know why you are buying it (not just "I want three million
hits a week more"). That is media planning which seems to be the most
ignored portion of online advertising.
If you know how important a piece of space is to your media plan then you
can negotiate accordingly.
2) Value - As the whole online advertising industry is still shiny and new,
it needs credibility. When IBM, Colgate or Toyota buy space on a site it is
saying "Yep, the Internet is a real medium and not just the 90's CB radio".
Therefore deals will be struck between the Salesman and the Buyer to ensure
a better perception for the whole industry. There is also the ability for
salesman in publishers (not so true with Inforseek and Excite) to arrange
deals across media e.g."... full colour dps in our premium printer magazine
and I can sort out 200k impressions on our homepage for ..."
3) Relationships - If someone turns up out of the blue to buy a normal
product from a company, they are normally just given the chance to buy it.
If an old colleague, adversary or friend turns up then you start to talk,
gossip and deal. This is how good buying is done. Buyers and Sellers of
space spend much time and money on building their contacts. This is
reinforced by helping people out from time to time, having an interested in
what you are actually doing (advertising, especially online is always full
of theories and opinions)and so making the dealing for the space just part
of the relationship.
Most people who are just now getting into Internet advertising and
publishing are slowly working out that there is more to any space then just
it price.
Well that is for now.
Excellent list by the way and may we all be chatting in the years to come
about "how it was when it all began"
Regards to all,
Graham Hansell
Head Planner/Buyer
Sitelynx - Online Media planning/buying
-- Bringing
the right people,
at the right time,
at the right price
to your site --
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Web - http://www.sitelynx.com
Email - sitelynx_at_sitelynx.com
