ONLINE-ADS>> Who's got something that works?! / O-A FAQ?

Randall Farmer [Team 13429] (rfarmer_at_HiWAAY.net)
Sat, 19 Jul 1997 19:03:23 -0500 (CDT)

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There's one problem with all this talk about cost per impression, per
click through, per sale, per multi-hit user session (not in use by any
network, but I'm considering using it to measure efficiency of different
ads for sites that don't sell anything), and all the other models: you may
actually be getting a cheaper cost per objective through a straight CPM or
clickthrough buy than you are by "paying for results." I'm not for any
model in particular, just as long as you get a cheap cost per objective.

CPO is a great measure of economy, and what model the sites decide to use
is immaterial to anyone but the entity that can't figure the CPO they get
from a certain CPM. However, each model does seem to shift the burden a
little bit -- a cost per sale model puts more pressure on the people
showing the ads, whereas a CPM model shifts the burden to the advertiser.
Seems to me that sites should still go with CPM or at least click-through
and the all-in-one 'net marketing companies should charge their clients
per sale -- that way, nobody's revenues depend on something beyond their
control (in the click-through case, it's the advertiser's banner's
effectivenes [although the site's effectiveness in making people click is
a factor, too], and in the per-sale case, it's the banner's effectiveness
and the website effectiveneess as well).

---

Also, even though this isn't a Usenet newsgroup, enough info passes
through here that it seems this list is worthy of an FAQ. Comments?

<MODERATOR'S NOTE>

Writing a FAQ for this list is on my list of things to do. (In fact, it
is half written already.) Until then, here is really good resource
to help you come up to speed:

Web Advertising Terminology, Traffic, Statistics and Usage - A Primer
http://www.adresource.com/webprime.htm

</MODERATOR'S NOTE>

---------------------------------------------------------------------------
Randall Farmer

  Feel like tearing my lungs out after reading this post? Instead, direct
  your anger to rfarmer_at_hiwaay.net


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