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NONE: Re: ONLINE-ADS>> Petry Network

Re: ONLINE-ADS>> Petry Network

Mark J. Welch (MarkWelch_nospam_at_ca-probate.com)
Tue, 01 Apr 1997 13:19:02 -0800

sdarkbird_at_aol.com wrote (in news://news2.linkexchange.com/le.test):
> My stats from Petry Network:
> Total Impressions 258452
> Total Clickthrus 815
> Clickthru/Impression Ratio 0.3%
> Total Commission: $ 57.84

David Hedbor wrote (also in le.test):
> My stats, since Feb 27th:
> Total Impressions: 627808
> Total Clickthrus: 8571
> CTR: 1.5%
> Total Commission: $361.81

So you are accruing royalties of 7 cents per click-through
and 4 cents per click-through, and an effective CPM rate
of $0.22 and $0.576, respectively. This in an industry
that pretends that ad sales should be at $20 to $70 CPM
(or ONE HUNDRED TIMES the rates you are reporting).

An obvious question for me to ask is, will these revenues
pay your expenses? If not, then you should be exploring
other options, such as replacing paid ads with exchange
advertising that will increase traffic (if you can sustain
increased traffic without any income), or even going ahead
and closing down your site or trying to focus your efforts
on demographic groups that will draw higher-paying ads.

My own conclusion is that these reports may reflect the
direction of web advertising -- I have long expected rates
to inch downward so that CPM for untargetted advertising
will be well under $10 CPM, while well-targetted advertising
(when it finally comes into existence) may command greater
premiums than previously thought (e.g. $100 to $500 CPM).

(Obviously, Petry's figures are NOT final, insofar as they
include ads that may be paid based on commission sales,
so that traffic from March may result in additional
royalties based on sales that are not reported until
April or even May. I'd like to hear comments from Petry
regarding the performance of the network to date.)


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