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NONE: RE: ONLINE-ADS>> ad rates

RE: ONLINE-ADS>> ad rates

Robert Grosshandler (rob_at_eyegive.com)
Wed, 19 Nov 1997 20:39:05 -0600

On Tuesday, November 18, 1997 12:38 AM, Daniela Muhling
[SMTP:barline_at_ggg.net] wrote:
>
> A short while ago someone posted a message which discouraged the
> practice of offering discounted ad rates to attract new advertisers.
> The rationale was that the advertisers would come to expect the low
> rates and would be reluctant to renew when the discount period was
> over.
<snip>
>
> I would be interested to hear other opinions on the same subject.

Hi

I can offer up our experience. Since eyegive's only content is ads, having ads
in place when we launched was imperative. And since our rate base would be
small at launch, it didn't make much sense to haggle over very small numbers.

We also faced the hurdle of having a non-standard ad size (we deliver full-page
ads) so sponsors would have the expense of creating those ads.

We determined that we would offer sponsors a free trial - if our site proved
effective in delivering clickthrough AND branding, then we'd have something
to sell.

If we're an effective medium then a good sales effort should win out - the
fact that
we "gave it away" notwithstanding. If not, then no amount of selling,
discounting
(until you reach a point where you do become effective (a point probably below
your cost)) or other kinds of song and dance will matter.

While the jury is still out (we launched two weeks ago) we'll deliver somewhere
around 300,000 ad impressions this month, on track to double into December. Our
clickthrough rate for all ads is about 10% (this includes micro-buttons).
Our full
page ads are running closer to 20% clickthrough. Prospective advertisers
don't feel alone, and they can see real results in others' campaigns.

Plus, we've been able to get experience selling, scheduling, and delivering
real ads,
when the stakes were smaller.

We've now institutionalized our free ad program into a "test drive" for
anybody to
try. We have benchmarks to compare to, and we are accepting standard CPM
advertising as well as per inquiry AND per order advertising. Because we have
been running real ads, we'll know if these newest advertisements are working
the way they should.

For us, then, it was a good idea.

Hope this helps.

Yours,

Rob

Robert Grosshandler
---------------------------------
eyegive
http://www.eyegive.com
Where just visiting does good.

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