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

Leonid Delitsin (silent_at_netcom.com)
Wed, 12 Feb 1997 05:36:13 -0800 (PST)

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Allan Sabo writes,

> >Does Targeting increase CPM?
>
> But why?
[...]
>
> Yet, I realize that competition may drive many networks to consider
> targeting as a value added. While they may win a few clients, I do believe
> that strategy will lose the war. What we will need to determine as an
> industry is "what targeting capabilities are "inherent and obvious", these
> should become value added features, those targeting capabilities that are
> derived out of your "abilities", these should increase your CPM rate.

It depends on the supply and the demand.

When a sponsor is asking "why do you want to charge me for the viewers
that I don't need", I have nothing to say. Right now we are adding
targeting just to keep sponsors with us.

This sponsor is targeting a very tiny group - Russian immigrants in
the US. He does not want Russian domains(.ru, .su, .ua, etc.).

We cannot charge him more than he can pay and there is no others who
would pay more.

Actually it was easier to keep sites "employed" when we have been
tiny. Now, when we are riching million impressions per month - there
are just not enough paid sponsors for every site.

What happens, is that several sites already advertise 'per click' in
the bottom of the pages, while bartering banners in the top and
growing to provide more clicks. This certainly slows down the advertisers,
though providing them with the prices they can pay.

Sincerely yours
Leonid Delitsin
Sputnik Advertising Network Russian Internet Magazine
http://www.kulichki.com/sputnik/ http://www.zhurnal.ru/
1601 Adams St., Madison, WI, 53711 phone: (608) 259 8463 (608) 262 9269

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