Re: ONLINE-ADS>> Direct response pricing

Kief Morris (kief_at_kief.com)
Mon, 25 Aug 1997 11:13:34 -0400

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At 09:16 AM 8/23/97 -0400, Bob Schmidt wrote:

>Yes...and no. In direct marketing, at the absolutely most simplistic level,
>you have three variables: the list, the offer, and the creative. Of the
>three, the list (i.e. the audience) is generally considered to be the most
>important-- so don't sell yourself short. The offer is next in importance
>and the creative is last. Thus, who has control over the most important
>variable in the direct marketing model? The publisher. If the publisher is
>doing a good job, the quality of the list will be high for many -- though
>not all -- advertisers and offers aimed at the target audience.

This actually argues for *not* paying for click-throughs.

The list, the audience, is measured by impressions. The offer and the creative
are what deliver click-throughs and, as you imply, are not under the control of
the publisher. The advertiser should pay the publisher for what the publisher
can deliver - the audience/impressions.

If the quality of the audience is not that good, then the advertiser should
renegotiate what they are paying for it, or find a publisher with a better
audience. The point is to pay the publisher based on the quality of what
they are providing, not based on the quality of what the advertiser is
providing.

Kief

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