RE: ONLINE-ADS>> Does Targeting increase CPM?

Steven Heath (Steven_Heath_at_grey.net)
Mon, 10 Feb 1997 17:49:02 -0700

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[comparions to trad. marketing/advertising deleted]

> More importantly, WE as an industry, need to look at the potential of
> response. In direct mail, I think the industry average response rates
> are about .05 of 1% (but lets say it is 1%). And according to
> statistical research conducted by I/PRO on ad-banner response
> (click-thru) rates are at about 2.85%. Hence, Jim, we can evaluate
> pricing and targeting based on an equivalent return to achieve a similar
> value to a response.

You can not compare click thru rate on a banner ad to that of response to
a direct mail piece as being equal in value.

A banner ad click is merely a person looking for more info or is just
curious about what the ad was about or the company.

A direct mail response is normally a call to a 1800 number or a completed
reply card. In either case the person has actually spent time to either
call or fill out a card.

I would far rather have a person call my 1 800 number and thus pre qualify
themselves for my product or service than have a Internet user click on my
site. The first is a real prospect, the second may be a prospect and maybe
not.

So, the issue is ensuring that it is better value for money for Internet
advertising than for direct mail is the real area for disccusion. This is
similar to Mark Welch's comment about the CPM price for untargted banner
ads being overpriced.

Steven Heath
General Manager - West
GreyInteractive Canada

Phone: (604) 687-1001 Email: Steven_Heath_at_grey.net
Web: http://www.grey.net

Canada's only complete Interactive Marketing Agency

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