NONE: RE: ONLINE-ADS>>The Value of Ad Space
RE: ONLINE-ADS>>The Value of Ad Space
Margaret Raye (info_at_adbot.com)
Fri, 18 Jul 1997 10:09:51 +0000
I would like to offer one final post on this issue and then allow
members to resume discussion of other topics. It seems as though there
has been some miscommunication regarding the true value of ad space and
the value of the adbot network.
>I had to read this twice to make sure it was not a typo. Did they say 55
>cents? My understanding is that adbot takes 15% of the gross leaving
>85%, in this case, 46.75 cents per 1000.
>Lets see, assuming you have 50,000 page viewers sold at 50 cents CPM
>(lets round up) you get a massive $25.
In response, the category of Action Games is by far the lowest CPM
category in our auctions. Generally speaking, our auction executions
have been in the $2 to $4 CPM range. We do not set the prices, the
market determines the prices. Additionally, Action Games usually
generate millions of impressions, not thousands.
>From Steven Heath:
>>Anybody from adbot want to jump and say how they see the direction of
>>these auctions going?
We at adbot cannot predict the future, but interest from advertisers has
risen dramatically since we started and has especially accelerated since
the conclusion of the June 26 auction. In any auction, of course, the
more bidders participating, the better the price support.
In response to the issue of targeted versus untargeted impressions and
click throughs being a reason for low prices, adbot provides substantial
targeting. Advertisers target by subject matter. Also, they may target
by time of day, browser, domain and/or operating system at no additional
charge. In certain single site auctions, we also have gender, age,
and/or geographic targeting available.
A point not raised here, but which we have seen in other discussion
groups is slow delivery of adbot banners during May and June. We have
substantially upgraded hardware and software since that time,
incorporating far greater CPU power, memory, and bandwidth.
Another poster mentioned a revenue per sales (i.e. commissions) model
that certain direct marketers are promoting. He has hopes that this will
generate more than adbot. We have explored this path with quite a few
direct marketers and our experience is that the revenues from such
programs not only are generally unreliable and diminish over time (i.e.
with time, click through and applications yields fall ), but the net
revenues to the publishers have not been nearly as high (contrary to
some of the marketerís claims) as the net revenues for adbotís auctions.
Another poster expressed concern that adbot is not contacting enough
advertisers; otherwise the prices would have been higher. The fact is
that we have a team of five researchers who do nothing all day long but
identify advertisers and publishers for our brokers to call. We
currently have ten brokers who are in continuous contact with such
publishers and advertisers to service their accounts and promote our
auctions. We continue to expand our staff, but rest assured we are
committed to promoting this market.
We also advertise with Advertising Age (sponsoring their home page and
running weekly ads in their print publication) and will soon launch with
AdWeek, BrandWeek and Media Week. We exhibit at trade shows and utilize
other marketing approaches. In summary, we work hard for our publishers
and will continue to do so in the future.
This list has been an invaluable source of industry updates, business
concerns and thought provoking debate :). We appreciate all of the
interest and feedback given for our approach to the business. We will
continue to invest in new technology, services and marketing as we
strive to make the Internet advertising market efficient and healthy.
I hope that anyone attending the Internet World show in Chicago, July
23-25 will stop by the adbot booth (#142) so we can finally meet face to
face and answer any additional questions
--
Margaret Raye
Manager, Writing/Production & Research
adbot, inc.: the auction market for Internet advertising
margaret_at_adbot.com
1.888.ADBOT.INC ext. 705
www.adbot.com
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