ONLINE-ADS>> Where's the money?

coulter (mc_at_coulter.co.uk)
Fri, 10 Oct 97 05:47:00 -0000

• Messages sorted by: [ date ][ thread ][ subject ][ author ]
• Next message: Kevin Leathers: "Re: ONLINE-ADS>> Value of Test Banners?"
• Archive Home Page
• Search
• Previous message: Mike Pooler: "RE: ONLINE-ADS>> Value of Test Banners?"
• Next in thread: Steven Heath: "Re: ONLINE-ADS>> Where's the money?"

I was talking to the owner of an Advertising Agency the other day.

He asked me, "If an ad agency, evangelises the Web to a client, and puts
say, a banner campaign online, how does the agency make any money?"

I couldn't give him a satisfactory answer, maybe this list can help.

His view was this.

Sure, there may be 15% media commission to the agency, but the overall
media spend would probably be so low, that the agency would make very,
very little. An absolute fraction of an above the line campaign.(Unless
you're handling an online mega-brand, and how many agencies are lucky
enough to have that kind of business?)

If, as can often be the case, the agency works for client's on a monthly
fee basis, all the web creative work will probably come out of that, so
no extra money there. Art work income to = smallish.

So, extra work for creative, account handling, and the media dept, for
very little return.

Of course there's added value and a nice rosy glow from the client if the
online campaign works, but very little income for the agency however.

And so by definition, very little motivation for that agency, to
encourage clients to embrace the web. At least until online ad budgets
are big enough to bring ad folk satisfactory levels of return.

We do see some big online ad budgets for the tech companies, search
engines and the like but it's still a drop in a great big bucket.

How does an agency get a reasonable online income?

Mike.

----------------------------------------------------------------------
This week's Online Advertising Discussion List sponsor:

The Internet Advertising Report provides daily columns on every aspect
of Web advertising and marketing. It is updated daily and available in
a weekly newsletter. Subscribe at: http://www.internetnews.com/IAR

-----------------------------------------------------------------------
Online Advertising Discussion List To Unsubscribe send UNSUBSCRIBE
http://www.o-a.com/ to online-ads-request_at_o-a.com

• Next message: Kevin Leathers: "Re: ONLINE-ADS>> Value of Test Banners?"
• Archive Home Page
• Search
• Previous message: Mike Pooler: "RE: ONLINE-ADS>> Value of Test Banners?"
• Next in thread: Steven Heath: "Re: ONLINE-ADS>> Where's the money?"

With an archive of more than 14,000 postings, since 1996 the Online Advertising Discussion List has been the Internet's leading forum focused on professional discussion of online advertising and online media buying and selling strategies, results, studies, tools, and media coverage. If you wish to join the discussion list, please use this link to sign up on the home page of the Online Advertising Discussion List.