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NONE: ONLINE-ADS>> Haggling Tactics

ONLINE-ADS>> Haggling Tactics

David Fox, KnowledgeWeb (david_at_knowledgeweb.com)
Fri, 12 Dec 1997 12:46:44 -0800

A large prospective advertiser is running a test on our astrology.net site
and the first day's reports showed a 3% click-through for 4 out of 6 better
performing banners (2.2% overall). That seemed like a decent result so I
sent a note to the agency looking for feedback. The reply was prompt and to
the point.
"A 3% overall is extremely poor for <SITE NAME>. Even if we take out the
poor performing banners, your site will need to do better to go beyond the
first test."

I know that click-through ratios vary all over the map so I'm NOT asking
the list "Is 3% a good number?"

My question is: How best can we avoid exposing ourselves to this and other
haggling tactics (if indeed it is one in this case) as we work to convert
prospects into customers?

An answer that comes to mind is to establish minimum cost-per-click
expectations up front. Is that normal practice or a dumb idea?

Thoughts? Suggestions?
Regards,

David Fox
KnowledgeWeb, Inc.
3220 Sacramento Street, Suite 26 San Francisco, CA 94115
david_at_knowledgeweb.com http://www.knowledgeweb.com
Tel: 415/447-6193 x888 Fax: 415/447-6191
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