NONE: Re: ONLINE-ADS>> superceding the browser????
Re: ONLINE-ADS>> superceding the browser????
Bob Wyman (bobwyman_at_healthgate.com)
Fri, 4 Oct 1996 08:19:21 -0400
William Henry <bobhenry_at_cymedia.com> wrote:
> The click through tracking is only an additional service
> that an ad-space provider can offer advertisers, to aid
> in determining effectiveness, but it cannot be the basis of
payment.
While click-through tracking should not be the basis for payment, it
should be part of the formula for pricing. As pointed out in previous
postings, click through rate is not soley dependent on the design of
the ad. It is also dependant on factors related to the spot in which
the ad appears. I previously showed that on our sites, identical ads
have widely differing click-through-rates when presented to identical
audiences but in different spots. (i.e. one spot was a search form,
another the search results and the third, a section of "articles"
which are browsed.)
Given these ad-independent variances in response, advertisers should
insist that publishers offer a variety of "spots" on their sites and
that publishers report the historically observed click-through-rate
for each spot. Additionally, advertisers should insist that there be
a correlation between spot price and click-through-ratio for spots
which are presented to the same audience on a single site.
>The endcaps at the department stores are an extra
>charge, based on location, not based on how many get sold.
The endcaps cost more because there is historical evidence that
people tend to purchase more frequently from an end-cap than they do
from a normal position on the shelf. Thus, stores charge more for the
end-cap even if the results of a specific promotion are bad. What the
store is doing is charging you for the proven capacity of the end-cap
to sell rather then the actual results you get. Web sites can and
should do the same. Click-through-tracking can provide the data
needed to do so.
> Just because the method of distribution is by way of copper and
fiber optic
> wires, and there are ones and zeros involved instead of ink,
doesn't mean
> there has to be a whole new way of doing business.
There are alot of people who think that just because we've got new
technology we need new business practices. The cry for new practices
comes up just about every time any new technology is introduced. It
is, however, the case that the business practices that we use today
are the results of thousands of years of development in a constantly
changing environment. We have them today because they have withstood
the test of many, many previous technological changes. We don't need
revolutions. What we need is an understanding of how to apply what we
know.
bob wyman
-----
HealthGate Data Corp.
<URL:http://www.healthgate.com/>
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