ONLINE-ADS>> Let X=X

Mark Grimes (grimes_at_eyescream.com)
Wed, 9 Oct 1996 15:17:43 -0700

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>From: William Henry <bobhenry_at_cymedia.com>
>Maybe there is an innovative way to handle online advertising, but I don't
>think this is even close to it. The click through tracking is only an
>additional service that an ad-space provider can offer advertisers, to aid
>in determining effectiveness,

It's a service that the advertiser can also do themselves buy building a unique
middle page for every banner buy.

Impressions can be spoofed.

Click-throughs can be spoofed.

Results cannot.

>but it cannot be the basis of payment.

Sure it can, the art of the deal exists in every banner buy. I'm executing banner
buys that range from $15 to $75 CPM. Almost every site I deal with has extra
inventory at the end of the month. Much like with radio, unsold inventory can
never be recouped.

How about $10 CPM, plus .05 cents per click-through?

How about .15 cents click-through only with a maximum monthly budget
of $1,500 for all unsold inventory?

It's a buyers marketing. Product is cheap, advertisers want customer delivery.

>Take
>a look at almost any type of marketing, noone gets compensated solely on
>sales or responses....

Except for direct response marketing including telemarketing, direct mail,
card decks, and electronic PI (per inquiry). Like it or not, as an advertising
vehicle the Internet is more like direct response than print or electronic media.

>Grocery stores charge manufacturers or their
>distributors extra for placement in the middle shelves in the aisles, not
>for each one sold. The endcaps at the department stores are an extra
>charge, based on location, not based on how many get sold.

Grocery stores have limited shelf space, a Web Site can double its size in
an hour.

>The
>"click-through" can help determine whether I will buy that space again, but
>I still have to pay the value of it until I find it to be of less value.

First line of decision CPM.
Second line of decision click-through ratio.
Third line following click-through on site to purchase/survey/desired result

[gasp]

[stumbling back you ask] publishers responsible for click-through and sales
from banner ads. It's not their responsibility.

What about poorly designed banner ad?

What about hard to navigate Web Sites?

Yeah, that sucks. But buyers are using technology to measure the results
of their banner ad dollars, beware. Let X=X

If my site sells product, I won't buy CPM or percentage click-through of CPM,
I won't care if it's $10 CPM or $125 CMP.
I won't care if I get 2% click-through or 25% click-through.
I'll buy results.

Ad budget Return
Site A $500 $1,500
Site B $500 $2,000
Site C $500 $300

Your 30 days are up, renew contracts with two of the above sites. Let X=X

[yeah, but]

Sure this methodology scare publishers. They may think they're selling
impressions, but the customer may be buying accountability/results.

Managing expectations is crucial for successful Internet advertising and marketing.

What do I know, I'm probably wrong, and it's all gonna change tomorrow anyway.

Regards

Mark

------------------ Multimedia Marketing Group, Inc. ------------------
Mark Grimes, Sr. VP Advertising 503/699-6939 telephone
Online Advertising & Promotional Services
grimes_at_mmgco.com 503/699-6943 facsimile
~ C|Net Best of the Web ~ Point Top 5%
129 Foothills Road, Lake Oswego, OR 97034
--------------------- <http://www.mmgco.com> -------------------------

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