NONE: ONLINE-ADS>> percentage of false impressions
ONLINE-ADS>> percentage of false impressions
Leo Sheiner (leo_at_netcomuk.co.uk)
Tue, 03 Jun 1997 11:13:37 +0100
Bob Schmidt <schmidt_at_magicnet.net> wrote:
>Hmm. From my perspective, I actually see no reason why strict CPM >pricing
>will not work. Banner buyers are a savvy lot who can quickly size up any
>pricing scheme the banner seller comes up with. Far more of an issue at
>this point: the high CPM. I see this as a pricing problem. IOW, the level
>of inefficiency should be reflected in the price. So far, it is not.
>
>Thus, I predict significant downward pressure on banner CPM's over the
>next year, even targeted CPM's. Lower rates cover a multitude of
>inefficiencies, making them less of a concern. At some point market >forces
>will come to their senses and the value of a 7-postage-stamp-wide >billboard
>will assessed properly. In the meantime, good negotiating skills continue
>to be an essential ingredient in every banner buy. But what else is new? <g>
<snip>
Bob goes on to make many other interesting points about the minimum
quantities demanded by banner hosts or banner reps and the downward
pressures on banner pricing. I believe we have addressed this very point
with http://www.safe-audit.com Here for the banner provider there are no
minimum quantities to purchase, no exclusive tied arrangements as per the
banner networks, no minimum pricing, complete flexibility in how you define
what you will pay, no money up front. It is a complete paradise for people
who want their banners hosted. Yet for content sites it is just as good, no
minimum traffic required, no minimum commitments, no exclusive tied
arrangements, you get to choose precisely the banners you wish to host.
The interesting thing about this model is that it should lead to far more
precisely targeted placement because the hosts revenue stream depends upon
his exercising that judgement. Furthermore it is a true market in that the
host sites will only pick those banners that they believe will make a
profit for them. The bad will fail, the good will triumph. The result
should be banner advertsing prices very precisely matched to supply and
demand.
And that brings me to another interesting point. It would appear to me from
our early registrations that Safe-Audit is going to unlock an enormous
amount of supply of banner space from sites that at the moment have no
possibility of doing business with reps or banner networks. I suspect that
in time even people not using Safe-Audit for their banner sales or
purchases will visit in order to see the publicly available statistics on
revenue per 1,000 exposures achieved since that will be a true market
indicator. Of course one downside in this is that it negates Bobs good
negotiating skills <g>
http://www.global-m.com/ for guaranteed profits on the Internet
mailto:leo_at_netcomuk.co.uk Telephone +44181 346 0770
Banner space to Buy or Sell? http://www.safe-audit.com/
Resource site http://www.Chemicalweb.com/
