NONE: ONLINE-ADS>> Modem Media's proposed new ad model
ONLINE-ADS>> Modem Media's proposed new ad model
BSedg_at_aol.com
Fri, 4 Oct 1996 16:58:42 -0400
I enjoyed Bob Henry's remarks regarding various ad models and their
reprocussions. I agree with the notions to a great extent, but also would
like to add a few thoughts.
I tend to look at web advertising by going back to a basic economic model....
supply and demand. Currently, media buyers and other advertising decision
makers are so barraged by proposals and options, that it is a buyers market.
Supply greatly exceeds demand at this point. This fact allows buyers to
drive the market towards models that appeal to their clients or their bottom
line. I can't fault them for that. The market is too volitile and fast
moving to tell if this is short sighted thinking, or just good business
judgement based on bottom line numbers.
I think it is too early in the web advertising game to rule out any
possiblilities. My personal belief is that as the industry matures, that
advertising dollars will be spent on "packages" that include content
sponsorships, banner placements on CPM as well as CPC models as well as
'network buys.' (i.e. doubleclick etc.)
If a media buyer feels like a 'hero' for getting a 'click-through' deal
versus a CPM deal, they should re-think their buying motives. This could
definitely be construed as short term thinking. It shouldn't be about
getting one-up on a web publisher, it should be about message delivery, user
satisfaction and marketing value. The value of web advertising will be
determined by the mediums effectiveness at getting an advertiser's message
accross. The content of the site, the demographic, geographic and
phychographic profile of the visitors, the number of visitors, the
'community' of users and the responsiveness of the users should all determine
the value of the site to sponsors.
Historically, publishers deliver the audience via their media and advertisers
(or their agencies) deliver the message via their 'creative'. We can't rely
on this historical perspective to drive our media. Publishers have to be
equally creative in proposing ways to deliver the message, advertisers have
to be equally creative with the way they use the space. They also need to
budget dollars to test new ideas and be willing to pay for value delivered.
Both parties need to remember that user acceptance of advertising on the web
is key to the success of any advertising model. No one benefits by
aggrevating a consumer with an ad.
I hate to use the word, but in this case it seems appropriate..... CONSUMERS
are used to advertising. Most web users understand that sites need to have
some form of revenue to not only stay alive, but also to continue to add
compelling content and new technologies that make the web useful and
exciting. A survey of our users showed that the vast majority (76%) wanted
our site supported by advertising as opposed to paying a fee.
For our part, we will continue to work with advertisers to test different
types of ads and sponsorship programs. Supply and Demand will determine who
places ads on our site for now. We have the inventory and as we all know, an
ad opportunity, once lost, is gone forever. As my inventory tightens up, so
will my acceptance policy. I am not willing at this point to endorse any
model dogmatically. I will use discretion, I will test and I will encourage
creativity.
As a buyer and seller of advertising, I my basic feeling is that the CPM (of
a basic banner) model favors publishers and the CPC model favors buyers. I
think a combination of the two, combined with implementation of real content
sponsorships is the way to go.
And that's my two cents for the day. Bill
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Bill Sedgwick
Advertising Manager
Mapquest Publishing Group
bsedg_at_mapquest.com
http://www.mapquest.com
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