Re: ONLINE-ADS>> new payment model

Steven Heath (Steven_Heath_at_grey.net)
Thu, 10 Jul 1997 09:38:45 -0700

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> An advertiser wants to promote a dedicated 800 phone number in a banner
> ad and pay us $20.00 per inquiry to his call centre. We are wondering if
> anyone has had any similar experience with this kind of $ per inquiry as
> opposed to click-through

As a developer I have worked on this type of arrangement.

We are currently creating a site for a Insurance company. We offered to
waive half of our fee (no small sum BTW) in exchange for a share in the
success of the site. Any policy sold/issued that is generated from the
website (either online or prompted them to go to an office/call) we are
givern a commisson.

The upside is that we _could_ make far more than on a project fee basis.
Also, it shows good faith that our work and the web in general can produce
more than "corporateware" sites.

When I started the media plan for the site the first question I asked all
the reps I deal with is 'Im not looking for CPM on this buy, I want hybrid
or cost per sale/inquiry'. I am a big supporter of branding in online ads.
But this is not a branding program. We have to hit the ground running and
spend media money where it matters.

Also, $20 is far more than I and the client are willing to pay to a site
for a 'inquiry'. I would say run with the program as you only need ONE
call in 1000 impression to get a CPM of $20. The modify the fee based on
the sucess (or lack of) over hte first 60-90 days.

Steven Heath
General Manager - Western Division
GreyInteractive Canada

Phone: (604) 687-1001 Email: Steven_Heath_at_grey.net
Web: http://www.grey.net

Canada's only complete Interactive Marketing Agency

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