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

Tom Kirchman (tkirchman_at_raspberryhill.com)
Wed, 12 Feb 1997 08:35:47 -0500

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Hal Pawluk wrote:

> 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 would agree that click on a normal banner ad is about the same as
someone opening the envelop on a direct mail item. But what about a more
complex ad presentation that is then clicked on? What is the appropriate price
for an ad that fills the screen and allows the user to get an idea of what a
product is and then click for even more information or to close the
sale?

We have been testing a full page ad in our GIF Wizard online utility.
While the program is off doing work that naturally takes 10 to 15 seconds, we
put up a screen that says we are working on the request. The rest of the
screen is available for advertising.

Obviously the greatest value will be for advertisers who want to reach
people who are working on their web sites, but in any case the user gets a 100%
clear idea of what the product being pitched is, and if the click they are
more than a prospect, they are a very qualified lead or even a sale.

In our mind, pricing for the initial display should be in the range of
what a a click through costs for a banner, and/or if they click it is probably
equal to the someone calling the 800 number on a direct mail item.

By the way, our initial click through rate on the test ad (slight
updated since) was almost 5%. You can view the sample and get an idea of
the type of
ad at:

http://www.raspberryhill.com/bin/gifwiz?url=http://38.250.217.226/gifwiz/nsl
ogo.gif&fpad=newslinx

What is this kind of advertising worth?

--
Tom Kirchman                      Phone (201) 579-7994
Raspberry Hill Publishing         Fax   (201) 300-0642
http://www.raspberryhill.com/     mailto:tkirchman_at_raspberryhill.com
Custom CGI Programming - Graphics and pages created on the fly!


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