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NONE: Re: ONLINE-ADS>> Who's got something that works?! / O-A FAQ?

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

David Fox (david_at_knowledgeweb.com)
Tue, 22 Jul 1997 10:03:54 -0700

>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.

A good point, but only if you have $ in reserve to pay the bill - whether
or not the advertising works.

Making pay-per-sale work may depend on the product you're selling (low cost
digital products will be easier to track than automobiles) and perhaps
bringing something to the table beyond just a speculative share of revenue.

Astrology.Net's model is firmly in the pay-per-sale mode. We go "beyond the
banner" by offering our "affiliates" content at no cost (daily horoscope,
info about the signs, etc.). The products we sell are $5-20 astrology
reports, generated in real-time, making them easy to track back to a
specific ad.

We think its a win-win: Affiliates enhance their site and grow advertising
inventory; we gain access to a larger marketplace without stretching the
bank balance. Some deals are structured for us to to receive a share of
advertising sold on "our" pages too.

For us, the upside of pay-per-sale is that we conserve our cash for those
non-barter items like payroll, rent, new computers...The downside is that
we need to work harder at doing deals and creating content. But other than
taking in external funding, I can't see a more viable way to grow our
business. In that context, paying "too much" for space from time is still a
good deal all-round.

Regards,

David Fox
KnowledgeWeb, Inc.
david_at_knowledgeweb.com
http://www.knowledgeweb.com
T:415/485-5508 F:415/721-2471
9 Laurel Place, #7 San Rafael CA 94901 USA
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"Digital information products you can try and buy - Today!"
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