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NONE: Re: ONLINE-ADS>> Does Targeting increase CPM?
Re: ONLINE-ADS>> Does Targeting increase CPM?
Mark J. Welch, Esq. (markwelch_at_ca-probate.com)
Fri, 07 Feb 1997 19:13:48 -0800
At 03:28 PM 2/6/97 -0500, you wrote:
>We can now target by Browser type/version, OS, ISP, State, Zip, Geographic
>Region, Domain type, Music Genre, and other criteria.
>Assuming the average untargeted CPM for 1,000,000 impressions is roughly 20
>CPM, how much can we expect it to increase with some of the above targeting
>criteria?
First, I think you can increase the CPM for targetted advertising, but I
continue to question whether $20 is the correct CPM for untargetted
advertising. Indeed, I am gathering a lot of evidence that $20 is the
CPM for lightly-targetted ads (primarily 'targetted' based on site
content). And I anticipate downward movement for untargetted ads
(e.g. I believe that the "correct" price is way under $10 per 1,000
adviews).
Keep in mind, though, that your network is STARTING with a target
(music sites) and thus you are providing a slightly more complex
targeting model right up front. Music genre, for example, is likely
to be a good category for some advertisers. But as I've often noted,
targetting based on a broad genre like "rock" or "religious" is less
useful than being able to target based on specific artists. I expect
to see advertisers prepare ad campaigns with large numbers of
banners (e.g. an online CD vendor could prepare artist-specific
ads to be displayed on sites related to those artists, and genre-
specific ads for genre sites or on sites devoted to more obscure
artists).
I also think a network like DMN should test advertising models
based on click-throughs and even sales, for select advertisers
(the standard rules apply: no click-through sales for ads that
don't invite and generate click-throughs, and no sales-based
ads for products that are sold in most retail outlets).
-- Mark J. Welch, Attorney at Law, Pleasanton CA
-- http://www.ca-probate.com 510-462-8483
-- Email is not legal advice, and is not confidential.
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