Re: ONLINE-ADS>> Haggling Tactics

Scott Cherkin (scott_at_theglobe.com)
Wed, 17 Dec 1997 10:54:58 -0500

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Ray Taylor wrote:

><<My clients will pay for clicks, or other results, and nothing else...Once I
>have agreed a price per click, I will sink or swim on the basis of
>pushing my cost-per-click down and keeping it below the price I am
>charging my clients at the same time as ensuring I am getting the right
>kind of audience for the client campaign.

Ray,

The idea of buying on a cost-per-click or cost-per-anything is great for a
direct marketer. In fact, many networks and large sites already have tools
in place to work with advertisers who have direct marketing goals.

I think, however, its value is lost when brand advertisers start adopting
direct marketing mentalities simply because Web advertising is so
accountable. Thankfully, I am starting to see more saavy media buying from
Internet agencies that recognize the value of branding on the web. In
fact, we are just wrapping up a survey that will gauge the effectiveness of
a new 1-800 service banner campaign that ran on The Globe from one of the
top three long-distance companies. I expect the results of this survey
will stand as proof of the branding value of the web.

As I said, however, cost-per-action advertising is appropriate for direct
marketers and I commend you on sharing the risk with the sites you buy on.
Too often, buyers ask me for a cost-per-click without recognizimg that I
may be serving ads forever based on creative which I have no control over.
If I know that the buyer is willing to rotate the creative and fine tune
the campaign to ensure an efficent click rate, then my fears about a
cost-per-action deal are mollified.

And Ray, in the future, after the first week or two into your campaign you
see that your campaign is not meeting your goals you should rotate the
creative immediately. Asking your rep what happened after the campaign, is
obviously too late. A good salesperson will ask you to change the creative
along the way but you need to check those weekly reports and monitor the
campaign closely.

-Scott

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• Next message: Cliff Kurtzman: "ONLINE-ADS>> MODERATOR's NOTE: Seasons Greeting Gift from"
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