ONLINE-ADS>> comparing online CPM to other media

Andy Rebele (andy_at_clerk.com)
Sun, 15 Jun 1997 19:51:59 -0700

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There has been a heated discussion on this list about whether online CPM is
higher or lower than on other media. I would like to know if there are any
data that can help us with the comparison. The first factor to consider is
that on the web, you only measure an impression once someone sees the page
where the ad appears. On print media, you measure an impression once they
buy (or receive in their mailboxes) a copy of the entire publication. Here
are some facts that I think we need to know in order to intelligently
compare, more than just saying "$20 CPM is greater than $10 CPM".

* what percentage of the total pages in a publication does a reader
actually see? (since on the web, impressions are only measured on viewed
pages, not all pages in a viewed publication.)

* what percentage of people leave the room when commercials come on TV?
(for the same reason)

* what percentage of ad views on the web are unmeasured because they are
cached?

* what percentage of ad views on the web are due to bots, search engines,
and the like?

Of these four factors, only the last one would bias a comparison to make
the web look cheaper than other media. The other three are measures of
important effects that now make equivalent CPMs look much higher on web
advertising.

For example's sake, let's make some assumptions (pulled out of the air).
Let's assume that the average reader of a print publication sees 75% of the
pages in a publication, and that the average TV watcher actually sits in
the room for 75% of the ads. Let's also assume that 30% of ad views on the
Internet are unmeasured because they are pulled from cached copies. Let's
also assume that 10% of ad views are due to bots.

If our assumptions were true, then a $20 CPM on the web would actually be
equivalent to $11.55 on TV or print media.

If anyone knows of real data on these factors, I would be interested to know.
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