NONE: Re: ONLINE-ADS>> Re: Modem Media's Proposed New Ad Model
Re: ONLINE-ADS>> Re: Modem Media's Proposed New Ad Model
Sean Pfister (seanp_at_cnet.com)
Thu, 3 Oct 1996 09:49:44 -0800
I guess I'm awakening from my dogmatic slumbers. (I'm not Kant, but then
again you're not Hume. And this is just advertising, not epistemology.)
Anyway here are some comments, for what they're worth.
Markbar writes:
> The concept of rates based on activity is workable it just needs some new
>equasion or
>rules to meke it work.
Anti-gravity is workable too, with the right set of rules. It would help if
you defined activity in some meaningful way. Obviously it can mean sales,
but how do you measure "activity" when the goal of the advertising program
is to generate awareness, or simply to brand?
Assuming we can all agree on what "activity" is, who will measure it? More
importantly, who will pay for the measurement? Since the content site has,
in effect, become a partner in risk with the advertiser, it seems
reasonable that the advertiser should pay for a third party audit of
"activity". I sure won't trust the advertiser to tell me how much
"activity" is delivered by my site...
>It certainly would be fair
Fair is rarely the issue in business. I think it's reasonable to look at
models which minimally offer sustainable revenues for all parties
concerned. Maintaining a content site is an extremely expensive
proposition: advertisers want to market their products somewhere--that
somewhere is often a conducive editorial environment, which costs money (in
editors, production, design, marketing, MIS, and so on). Again it goes back
to the definition of activity--no one will build an environment like that
for a revenue model that isn't defined (even though it might be "fair").
>The problem with advertising in general is that too many people make too
>much money on
>hope.Hope you say?Yes hope.The hope of the advertiser that the ad will
>generate business.
You can't be serious. Think about it. Microsoft spends about $300 million a
year in advertising in the US. IBM, HP, Dell, Compaq, Cisco are in the
hundreds of millions. Do you think these companies are being hoodwinked by
advertising agencies and publishers who fool them into believing that
advertising will somehow generate sales? Poor Mr. Gates, he's such a nice
but gullible fellow.
Best,
sean pfister
director, research and analysis
CNET: The Computer Network
seanp_at_cnet.com
415-395-7805 x 1529
Fax: 415.395.9205
http://www.cnet.com
http://www.search.com
http://www.shareware.com
http://www.news.com/
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