Retail Advertising & Rates

Mark Gross (eld02471_at_interramp.com)
Fri, 26 Jul 1996 10:26:57 -0400

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I'm working on an analysis for a major daily newspaper on the =
advertising potential for a new web product we're developing and would =
appreciate some comments on the following:

-Is anyone having success selling ads to local retailers? Most of the =
advertising I see on the Web is for a handful of companies, mostly =
technology firms and some large package goods players.

-What tactics are working in selling to these firms? What are their =
expectations? What rate packages work well? What is retention like?

-As a magazine publisher, I always developed launch packages for new =
products. Any examples of successful models for Web prdouct?

Re rates: I have been following the debate on this issue in this list =
and in other places. Some observations (based on fifteen years of =
magazine pubishing):

1. It's going to be very difficult to change how people buy media. =
Much simpler to package Web advertising in the value models of =
traditional media.

2. The pricing model that seems to make the most sense is vertical =
print (including trade mags). Vertical print CPMs are much higher than =
other media. Of course the trade-off is that their audiences are =
valuable to a smaller range of advertisers.

3. The premium position idea is one that media people understand. =
Perhaps we can exend that concept to Web sites based on the type of page =
that gets accessed. For example, a typical CPM might be $50 for a site =
on bicycles. But there's a premium charge for an ad downloaded with a =
page specifically on places to buy a new bike.

4. In print, advertisers pay a CPM based on the idea that every reader =
reads every page. Thus 100,000 readers=3D100,000 impressions for every =
advertiser every month. The Web exposes this fallacy to the harsh light =
of measurement. Bummer.

Anyway, thanks for input and comments.

Mark Gross
Cowles Media Corp

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