Re: ONLINE-ADS>> One to One

Ray Taylor (taylor_at_bizbiz.com)
Mon, 25 Aug 1997 09:51:44 +0100

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Cliff Allen wrote:

>> I think everyone agrees that magazines reach more people than the
>> Internet, and the editorial coverage of pubs helps move from "mass
>> marketing" to "targeted marketing" -- but the Internet today can take >>
>>that further to true "one-to-one marketing," just not to the quantity
>> that print can.

Josh McCormack <jmccormack_at_scholastic.com> replied:

>The only problem with a highly targeted niche is that if you don't
>generate huge page views no one is interested in advertising with you.
>It's a double edged sword.

So much discussion on this list seems to focus on the problem of finding
the one true way of doing business on the '.net'. Fact is there are many
successful models to look at and to presume any one is superior to any
other is to entirely miss the point.

If you want to run a business based entirely on Web ad revenues that you
will get nowhere without huge page impression rates. Don't event think
about offering a 'highly targeted niche.' 100,000 impressions at $30 CPM
represents a mere $3000 revenue. Even if you were to double or treble
the CPM for 'targeted' audience, you will still not generate substantial
revenues at sub 100,000 impression rates.

But that does not mean that you cannot make very good use of the Web
site to promote other revenue-generating models. If you really do have a
highly-targeted niche, as opposed to just a medium or low-level of
interest, then you should have no difficulty presenting promotional
opportunities to your clients. But you have to think beyond the Web
site.

There is no point trying to compete with magazines, unless you can do so
on their terms. There is no point trying to compete with the Web site
big boys, unless you can compete on their terms. But if there are only
1,000 people in the world (or your part of it) who buy a particular kind
of product, and you have a personal relationship with several hundred of
them, they you ought to be able to clean up - but not on Web ad
revenues.

Ray Taylor
London

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