NONE: Re: World Wide Web ad revenues
Re: World Wide Web ad revenues
Bob Gordon (bgordon_at_theautochannel.com)
Wed, 04 Sep 1996 14:33:03 -0500
At 12:06 PM 9/4/96 -0600, Cliff Kurtzman wrote:
>A PR Newswire release yesterday from Jupiter Communications indicated that
>total World Wide Web ad revenue for the first half of 1996 was an estimated
>$71.7 million. Some 600 Web sites offered ad space (according to the
>release), yet the top ten collected 66 percent of all ad revenue. Twelve
>publishers drew more than $1 million in the quarter. Fifty raised more than
>$100,000.
> So is guesstimating
>based on site inspections and published rates the best that can be done?
>Is this the same thing done for estimating ad spending in print and
>television?
>
>--Cliff
>
Hello group, We publish a web site called www.theautochannel.com. it is an
advertiser supported site...we are generating a substantial $um(for the
web).Our backgrounds are in the broadcasting area and as such have
experience with ad revenues.... a publication called BAR used to guesstimate
the revenue by market by actually reporting each commercial run during
specific weeks over the year and then guessed how much each spot was sold
for.the only good this did was to let the salesmanagers hear why their
station did not "get on the buy "from a creative sales staff. The dollar
amounts were worthless.
The reports are still acurate today are those that come from each TV
station in a market The stations woulsd join together and would hire a cpa
firm to actually pole each station and then report to each sales manager
..total market expenditures for the polled peroiod and their own market
share... this allowed each station to have a benchmark as to how they were
doing. When each station put their revenue against their rating delivery
they could adjust rates to match market conditionns...Buttttt tv is a
different animal then this new web thing. First of all the universe of
advertisers is wider... and' when was the last time any site was called for
avails against an on line budget(coming soon I predict) and what was the
price/cost criteria from those advertisers?Until a real benchmark as to what
exposure on the web is really worth and when the web becomes a medium with
limited perishable inventory a real market rate card will not mean a
thing...its worth what it costs. Selling advertising on the web is a new
frontier and should be treated as such...when Busch Beer made a ten year
exclucive deal with ESPN the ad community and beer community thought they
were nuts...who really watches austrailian rules football (sorry down
unders) especially on a delayed basis.. Buttt for ten yeas no other beer
could take advantage of what turned out to be the most efficient programming
to reach the male beer drinking audience.soooo whos got the last laugh
now...what is product exclucivity worth now ...next year ... in ten years,
only the future will tell. Sooo a long term advertiser -sponsor alliance
must factor in the mediums worth over an extended period of time, as well as
having it deliver short and near term media and brand affinity value.
Thee arguments that I have been following among users of this group are
indicative of the lack of sophistication within the on line publishing
community. This medium must be sold for its true value ..if not, then the
opportunity for creative entrepeneurs to break new ground will never
happen.. the corporate/vanity sites will flourish and then die due to lack
of corporate importance until a much later date then tommorow. The non
commercializers of the web will stand up and cheer as the most democratic
communications medium devised and implemented becomes the porno outlet to
the world...because as we all know porno sells...I can guarantee a clic
through rate of almost 100% through the inclusion of "click here to see
T.ts" banners. Its what made the VCR business...and unless a true value is
placed on web adverising will be what builds the web.
Bob Gordon Gordon Communications
624 W. Main St. Louisville, KY 40202
502-584-4100 fax 502-568-2501
bgordon_at_theautochannel.com http://www.theautochannel.com
