re: ONLINE-ADS>>Direct response pricing

Will Margiloff (will_at_jumbo.com)
Tue, 19 Aug 1997 11:52:50 -0400

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Kief Morris <kief_at_kief.com> wrote:

>Well, my partners are violently opposed to selling ad space based
>on click-throughs, but if we had to do it, I'd figure out what the
>worse click-through rates we get are, and calculate how much we'd
>have to charge per click-through to generate the same revenue as
>what we charge per impression. Then I'd round that up a good bit,
>maybe even double it, so advertisers would get much more value by
>buying per impression than by click-through unless their ad is
>*really* badly designed.

Kief:

Can't avoid COST PER CLICK. Avoiding it would mean that you were not open
to new ideas on the web. Plenty of advertisers are looking for alternative
ways to pay for advertising. Cost per click pricing is viable for
publsiher if they (the publisher) understands the cost it takes to generate
a good campaign for thier sponsor. If you play your cards right, CPC deals
can be more lucrative than impression based buys. Ceilings etc. will play
a major role in the effectiveness of the buy.

If you are looking for a general rule of thumb. Cost per clicks range from
$0.50-$1.50, depending on the service or product being offered.

Do I think that CPC is the only way to go? Absolutely not. It is just one
of the many ways to price out a buy on the web. At Jumbo!, 90% of our
business is based on impression buys. The other 10% is made up of other
"creative" deals such as CPC. Hope that helps.

Best regards,

Will

===========================================
Will Margiloff, V.P., Advertising & Marketing

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