NONE: RE: ONLINE-ADS>> Does Targeting increase CPM?
RE: ONLINE-ADS>> Does Targeting increase CPM?
Laura Mitrovich (LMitrovich_at_hhcc.com)
Fri, 14 Feb 1997 12:36:08 -0400
Len Bilello, CNET: The Computer Network Regional Sales Manager, wrote:
>Plus, when web advertising is done effectively the advertiser receives an
>almost equal amount of branding value while an advertiser is associated
>with a quality content publisher. Before I worked at CNET I sold ads for
>CNN's website and discovered that for many advertisers just being
>on_CNN_was "enough" for them.
Len has brought up a significant point that has been, in my experience, the
crux of most of the tension between ad agencies and sales reps so far.
Len, you can't possibly equate the value of a click-through as equivalent
to any branding that *might* result from an ad banner being placed on a
site (and I speak now only of ad banners). First and foremost, we ALL must
realize that this medium is used differently than traditional media. We
cannot layer traditional and staid thinking about general advertising to
WWW advertising. This is why these discussions are so important.
>
>You see sites like CNN, CNET, USA Today (and about 10-20 others) are where
>many people go day after day after day. So if click thrus are poor, a
>significant amount of good will is being generated through continuous
>exposure at the CNN (or other site).
Goodwill is wonderful. Put a price tag on it. I don't think it's worth
$100 CPM, especially when I need to generate a response rate report and
give it to my client.
Last year, DoubleClick did a study which seemed to indicate that peoples'
propensity to click on ad banners all but disappears after the third
exposure to a banner. So when you say that goodwill is generated through
continuous exposure, I would suggest that it is not, in fact, goodwill but
apathy. And, while I haven't read through the HotWired research in its
entirety, I recall that it was revised almost as soon as it was released.
I have reps constantly trying to sell me their sites based on the belief
that their audience matches my target, that they've got the people visiting
their site who want to buy my product, that they have such-and-such traffic
levels, that it's a perfect match. Great. If you believe the value of
your site to my client is that it will generate sales or qualified leads
for my client's product or service, then price on a results basis. Assume
the risk with me, we'll work on the creative together. If you honestly
question the ability of this medium to act as a direct response mechanism,
if you truly feel that it holds no greater ability than broadcast or print
to drive sales, then price on a level that corresponds to broadcast or
print. Sales reps frequently go on about the targeting ability of their
sites, while not having any information on their users. No registration,
no online surveys, no nothing. So the targeting is intuitive, rather than
fact-based, right? Isn't that the same with broadcast? I know that print
can prequalify audiences to a much greater extent than broadcast (or the
Web, it seems, so far). So, if you are unwilling to assume the risk of a
direct response site, and want to emulate the broadcast model more, then
let's talk about typical broadcast CPMs ($10 - $20 on average).
You cannot reap the financial return of a higher risk venture without
actually assuming the risk. I enthusiastically embrace any publisher/sales
rep who is willing to work together with me on this issue. Let the fur
fly.
Laura K. Mitrovich
Senior Interactive Media Planner
Hill, Holliday, Connors, Cosmopulos, Inc., Advertising
lmitrovich_at_hhcc.com
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