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NONE: Re: ONLINE-ADS>> Cascade Pricing
Re: ONLINE-ADS>> Cascade Pricing
Charles C. Smith (charless_at_realmedia.com)
Mon, 20 Jan 1997 18:28:12 -0500
The key to the cascade model is to evaluate exactly what the client's
objectives are and create an environment that meets everyone's needs.
The pricing (adding or subtracting) ends up being exactly the same- the
execution is a marketing issue for the seller. If a partnership is created
between the client and the publisher, creative messages can be created
together and the publisher can work with the marketer to suggest
environments that may enhance lead generation and sales: contests,
giveaways, better understanding of the target, etc. As for the store, one
of the promises of the medium is as a distribution channel- adjust the
pricing based on the viability of an online sale.
all in all- good debate fodder
At 03:03 PM 1/20/97 -0800, Mark J. Welch, Esq. wrote:
>>a lead is $2.00, not $2.53, a sale $15, not $17.53.
>> I look forward to comments.
>
>I think that "backing out" lower-level events adds an unnecessary level
>of complexity. If you believe that a lead is worth $2 net, and a sale is
>worth $15 net, then your rates should be:
>$.03 per impression PLUS
>$.47 per click-through PLUS
>$1.50 per lead PLUS
>$13 per sale.
>
>Any web publisher should be wary of any advertising
>arrangement other than impression-based, because the success
>of the campaign shifts out of the publisher's control: a click-through
>model depends on the quality of the banner ad and its relation to
>the subject of the page; a "lead" model also depends on the quality
>of the site visited; and a "sales" model depends on the quality of
>the banner ad, the visited site, and the product sold. (Also, a
>"sales" model is completely frustrated if the visitor selects the
>product online, but then goes out to a local store to buy the
>product.)
____________________________________________________
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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