NONE: RE: ONLINE-ADS>> Haggling Tactics
RE: ONLINE-ADS>> Haggling Tactics
Jim Meskauskas (Jim_at_HAWKMEDIA.com)
Mon, 15 Dec 1997 09:31:30 -0800
David Fox wrote:
>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?
If you wish to avoid back-end negotiations for an ad buy
renewal, establishing a cost-per-click up front is a good idea. That
way, regardless of the click-through rate, the buyer can't really talk
about poor performance because they are getting what they pay for
whether it comes at a 3% rate or a 30% rate. If you enter into this
kind of contract, however, make sure a "maximum exposure" level has been
discussed. I.e. 5,000 visit maximum _at_ $1 per, that sort of thing. As
an online ad planner/buyer, cost-per-click deals seemed to be the best
overall pricing model for a direct response campaign and one of my
favorite things to take to clients. Granted, the caveat is if there is
really crappy creative, or the advertiser is in a low interest category
(e.g. banks, phone companies) the site will have to pony up a lot of
impressions to generate the clicks. On the other hand, if you are a
site with lots of remnant inventory, cost-per-click is a great way to
get paid for those excess impressions rather than running them simply as
bonus.
~~~~~~~~~~
Jim Meskauskas
Media Planner
Hawk Media
731 Sansome St., 5th Fl
San Francisco, CA 94111
415-777-4645
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