NONE: Re: ONLINE-ADS>> 1:1 marketing on the 'net and otherwise
Re: ONLINE-ADS>> 1:1 marketing on the 'net and otherwise
Robert Grosshandler (rob_at_eyegive.com)
Mon, 15 Sep 1997 17:56:22 -0500
On Monday, September 15, 1997 12:23 PM, Andrew Forbes
[SMTP:andrew.forbes_at_redbridge.com] wrote:
>
<good stuff snipped>
>
> 1) Full up "real-time" targeted advertising is tough
> to do well e.g. so that it is scaleable and has three
> nines or better of availability.
>
A subject near and dear to our hearts. We're doing, we're up and live, and
"theoretically" it will scale. Cross your fingers. We found that being
precise in spec'ing what we're trying to achieve, testing as we went
along, and using off-the-shelf components wherever possible has gotten us
this far.
The big unknowns are still a) how valuable do individiduals find this, and
b) will advertisers recognize that value.
<more good stuff snipped>
> It does not matter many times I run the numbers
> for a targeted Internet advertising business plan,
> I cannot get the "after daily operational expenses"
> revenue number to exceed $1 per subscriber per
> month. Out of this a company is going to pay for
> R&D, their investors, and for a Ferrari for the founder?
Since I don't fit in a Ferrari, I've never really understood that goal, but
...
Our numbers suggest that, if you operate this as a low-margin business
(unlike most software businesses, for instance), enlist the support of
individuals and community-oriented organizations to help with the
marketing, and build slowly, you can create a business to write home about.
In our case, a major goal of the business is to help members help others,
but we also need to show a profit.
> The Internet will eventually support e.g. render
> profitable, a couple of targeted advertising companies,
> but it's going to take some time, and it's going to
> cost so much to do (PowerAgent has burnt through,
> what, seventeen million? and is still in trouble)
> that the winning companies will be those that
> had access to very deep pockets.
Here we agree with the premise of several profitable companies, but we
think the opportunity takes as much skill and timing as it does money.
The impact that full-page advertising has, coupled with what we're calling
Guaranteed Impressions, the goodwill generated by cause-related marketing,
and the efficiency of the Internet and demographic / psychographic based
targeting is amazing.
And, if nothing else, the ride is fun.
Rob
http://www.eyegive.com
Millions from millions for their favorite cause
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