NONE: Re: ONLINE-ADS>> branding with banner ads
Re: ONLINE-ADS>> branding with banner ads
dwayne_at_bam.net
Thu, 19 Jun 1997 09:13:42 -0400
Greetings all,
I have been on this discussion list for close to a year, I could not help
posting for the first time on what I believe is the most interesting debate on
the list thus far. I was reading a very interesting thread started by
Mr. Tumurcuoglu, if I am not mistaken, about the cost and value of banner
impressions and the downward pressure exercised by advertising agencies who
ignore the branding (or recall) value that these banners have. I recently
had the same debate with an ad rep and would love to see more material on it.
There is no doubt that banner ads represents an attractive direct marketing
tool on the Internet. But as Mr. Tumurcuoglu pointed out, this is starting
to overshadow some of its potential as a brand awareness tool. This seems
to be a dangerous prospect for Web site publishers who rely on ad revenue
and adverting agencies who expect to turn a profit in the exchange.
As James Houck writes in clickz (http://www.clickz.com) this issue, many
agencies will run their own network. Having followed the thread I am afraid
that these ad agencies are insensitive to the bandwidth dimension of the
analysis. It costs a lot of money to deliver millions of banners around the
Web. Will these be compensated for by the advertiser.
Adbot will probably sell more ads at $4 CPM in the upcoming auction than
Yahoo! will this month. This is very low for any medium let alone one that
offers an upscale targeted audience. Of course the bigger question is what
is the cost of bandwidth per thousand ads? Will the agencies be able to
turn a profit?
I am surprised Mr. Tumurcuoglu has not responded to new posts about this
issue as he seemed to drive a very strong point across. Personally I would
like to see the emergence of a hybrid model which can both recognize the
value and the costs of impressions (and awareness) generated for the
advertiser and have a click rate over and above this.
Does anyone have any thoughts?
Dwayne Dear
Senior Marketing Consultant
Business, Advertising and Marketing Solutions
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