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NONE: Re: ONLINE-ADS>> Are Paid Users Better for Ad Sales than Free?

Re: ONLINE-ADS>> Are Paid Users Better for Ad Sales than Free?

S. Alles (allmedia_at_cris.com)
Wed, 26 Feb 1997 13:57:11 -0500 (EST)

At 12:14 PM 2/25/97 -0400, you Daniel M. Ambrose wrote in part:

>The following was recently writen in the Seidmen Online Report:
>
>"Also, since these are paying subscribers, the advertisers take notice.
>Advertisers will usually pay more in the print world to be in a
>publication that charges a subscription fee than they are willing to pay
>for free publications."
>
>its worth noting that advertisers DON'T CARE AT ALL if
>a particular prospective customer is a paid user of the service or media
>in question. They care only that the target actually fits the buyer
>profile they have been sold the the media in question, and that the
>target actually viewed the commercial message.

I can see value judgements about *paid versus free* playing a role in an
online media buy. In fact, as being an indication of whether the target
actually fits the buyer profile.

Paid versus free circulation is often a consideration for a trade-pub media
plan. Circulation reports tell us who the recipient is but not whether they
actually *read* the publication. So paid circulation can be one indication
of the recipients' interest and therefore readership and ad exposure.

Paying for the medium can also speak of the recipient's perception of the
medium's relative importance to them. Ads presented in a medium that the
user considers as credible, authoritative, involving, etc., are likely to
benefit in terms of message registration/receptivity.

But even with the trade books, paid circulation is not always considered
superior. For example the *paid* status may come via association dues and a
well-qualified circulation could be superior.

With Internet audience measurements though, we have an almost reverse
situation from the trade pub's circulation data. Again, with the trade
medium, we usually know who is getting the book but we don't know if they're
actually reading it. With the majority of online buys, we have only sketchy
information about who the users are but we can verify usage.

So a paid online subscriber base can be more valuable IMO as a type of
target qualifier. One way is that the site may collect better target data
from their subscribers. Even if not, we know that the users have an
above-average interest in the content's focus.

There can also be reach/frequency ramifications but these are generally
neutral except in the context of a specific advertiser's goals.

Sylvia Alles

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