ONLINE-ADS>> Cascade Pricing

Charles C. Smith (charless_at_realmedia.com)
Sat, 18 Jan 1997 11:45:30 -0500

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I'd like to include in the discussion a cascading pricing model that Real
Media has begun discussing with some agencies and potential clients that
lies somewhat along transactional lines.
Banners do have branding value, but for some clients the customer
becomes more valuable after clicking through and then getting more
information or buying product. How about a pricing model that reflects all
of this? Where each potential customer is treated individually, based on
the interaction with the brand? In this cascading model an impression
could be worth $.03, a clickthrough $.50, a lead $2.00, and a sale $15.00.
The key is not paying for the impression on a customer that clicked
through, so that each customer is only paid for on the value they achieve-
a lead is
$2.00, not $2.53, a sale $15, not $17.53.
I look forward to comments.

____________________________________________________
Charles C. Smith http://www.realmedia.com
Real Media p212.725.4537
32 E. 31st St. f212.725.4573
9th Floor
NY, NY 10016

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