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

Hal Pawluk (pawluk_at_sprynet.com)
Tue, 11 Feb 1997 08:34:59 +0000

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Allan Sabo wrote:
> 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.

Nonsense. You're using the same flawed comparison with direct mail that
others with an axe to grind (i.e., have a vested interest in higher
rates for banner ads) use to mislead advertisers.

The banner click-through rate is a measure of those who finally get to
see the advertisers real offer, while the direct mail response rate is
for those who accepted the offer. Using your figure that 1% of those
who do get to the site will buy, banner ads are over-priced by orders of
magnitude.

I have more thoughts on the subject at
http://www.pawluk.com/pages/robbery.htm if you're interested.

--
Hal        "It's not marketing if it doesn't go for the throat."

                     http://www.pawluk.com/
A NetGuide Gold site.                        Feel free to add a link.


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