NONE: Re: ONLINE-ADS>> Direct response pricing
Re: ONLINE-ADS>> Direct response pricing
Mark Dolley (mark_at_zapworks.com)
Mon, 25 Aug 97 01:46:52 -0700
Frank Ball,fball_at_hearst.com wrote on 8/21/97 7:57:
>At 05:16 PM 8/13/97 -0400, Martinez, Gloria (Miami) wrote:
>>
>>Online group, our site has recently received several requests for
>>companies who wish to pay for advertising with us based upon click
>>throughs or actual sales. We have traditionally sold based upon
>>impressions, but are considering these new proposals. What is the
>>market price for click throughs, sales, per inquiries? Can someone give
>>me a clue on how to proceed further with this concept?
>
>Regarding click through models, I keep wondering why an
>Internet Publisher should risk revenues for an agency's
>creative and a manufacturer's product demand? The purpose
>of an advertising vehicle, including the Internet, is to
>deliver an audience. After that, it really depends on a
>variety of outside factors such as advertising design, copy,
>and product offering to get the audience to respond, or
>*Click*. Publishers play no role in these decisions, so why
>should they take responsibility for them?
Much of the insistence on clickthrough results is preemptive buck-passing
on the part of advertisers who have made bad campaign-planning decisions
and subsequently become disheartened by pitifully poor results. Its
understandable: if I'd wasted a client's money on a campaign that only
reaped <1% CTR, I'd look to make unreasonable demands on publishers too.
I remain convinced that sites are only accepting clickthrough-based
payments for ads because they have too much inventory. Its like cable TV
being paid for infomercials solely on the basis of product sold: payment
per response will endure, but will diminish as publishers get closer to
selling out their inventory with impression-based payment.
Another reason for drop-off in clickthrough-based payment will be the
decline of the banner as the predominant for of advertising. Intrusive
forms of advertising such as interstitials will guarantee delivery of a
branded message, however poor the creative and targeting. Meanwhile,
partnerships between online merchants and content sites (a la Amazon /
Virtual Vineyards) are a far more effective way of transferring incentive
and responsibility for results to the publisher.
Mark Dolley,
Director of Business Development, zapworks
(+1) 415 551 1800 http://www.zapworks.com
385 8th Street, Suite 210,
San Francisco, CA, 94103, USA
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