NONE: ONLINE-ADS>> The future of ad networks
ONLINE-ADS>> The future of ad networks
Leo Sheiner (leo_at_netcomuk.co.uk)
Wed, 16 Apr 1997 10:21:15 +0100
"Mark J. Welch" <MarkWelch_nospam_at_ca-probate.com> wrote:
>I have put together a brief essay or outline on what I believe will be
>"the future of ad networks" and posted it online at
>http://www.ca-probate.com/adfuture.htm -- I would appreciate any
>feedback, comments, or suggestions.
<snip>
Nobody I know could do this better. Mark provides a very informed overview
of the history and present state of banner networks and he makes a good
stab at what needs to be done to improve their effectiveness. It makes very
interesting reading for anyone marketing on the Web.
Since Mark asks for feedback, I will make the following observations.
Although his suggestions that banner networks need to provide better
information, better feedback, better market segmentation, better targeting
all make good sense, I do not see the market forces that will pull us in
that direction at any speed. Banner advertising remains a hit and miss
pseudo science. All the posts to this list illustrate this again and again.
If you want to know what works you have to suck it and see. Trying things
however can be a very expensive occupation.
Great claims are made but I do not believe that any content/traffic
provider can adequately predict what they will be able to deliver either
quantitatively or qualitatively. It remains very hard to be able to put an
accurate price on the traffic you wish to sell. Look how often there are
posts asking about how to price traffic. Without all the elements that Mark
is arguing for there can be no real market price for anything. It remains
the case that where individual deals have to be struck virtually in the
dark there is bound to be considerable unsold inventory.
My approach to this problem is different and is detailed at
http://global-m.com/safe.html I hope Mark will also comment on the SAFE
approach. Market acceptence has yet to be tested but the initial response
has been pretty favourable. I agree with Mark about what are the missing
components to make banner advertising really work for both buyers and
sellers. But I think that the way to achieve that is to create a perfect
market where supply and demand function smoothly in the open so that real
prices emerge that reflect the true value of what is being sold.
To facilitate this SAFE will provide independent auditing, an open market,
administration and payment collection all free of charge at the point of
delivery. SAFE only charges on performance. Also with SAFE it is possible
to be far more flexible in defining what performance consists of.
Ultimately each site seeking traffic requires a different profile, has
different objectives, and consequently would like to reward the supply of
traffic with a different payment by performance model. SAFE accomodates
those differences and allows market segmentation and targeting to occur
through the mechanism of the market.
Quite simply, if I have a site heavily biased towards male teenagers I will
not represent a good deal for someone seeking traffic of career women. So
if I am paid by performance I will not take that deal but I will take a
more appropriately targeted deal. Also if I am offered a whole raft of
different payment proposals I will take the one where the mix of profile
and payment proposal is most likely to maximise my profit. That provides
the open market mechanism which I believe to be essential to establish
banner advertising on a proper business footing. I would welcome comments
on the SAFE concept which is a wholly different way of approaching the
marketing of content. The best comment of course will be provided by the
market. If you would like to supply banners or traffic against performance
related criteria take a close look at SAFE.
Leo
http://global-m.com for guaranteed profits on the Internet
mailto:leo_at_netcomuk.co.uk Telephone 44181 208 0220
Banner space to Buy or Sell? http://global-m.com/safe.html
Banner advertising program http://global-m.com/blakoe/partner.html
Resource site http://www.Chemicalweb.com
