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NONE: Re: ONLINE-ADS>> Sales commission vs. ad revenue

Re: ONLINE-ADS>> Sales commission vs. ad revenue

Jason T Ellis (treknews_at_juno.com)
Fri, 19 Sep 1997 22:25:43 -0400

>I like this model and would probably jump at the chance to run ads in
>my
>unsold inventory on "spec" -- hoping to do some sales to generate
>revenue
>that would otherwise have been filled with filler, house ads.
>
>My question to this group is this: What about this model appeals and
>does
>not appeal to you? Have you tried anything similar? I think the issue
>comes down to revenue: If a web site publisher can generate enough $$
>to
>make it worth it, he/she will probably agree to this model.

OK... here's the problem with this model (as I see it):

In order for a per sale advertisement to work in the favor of the web
site publisher, the ad must be 100% targetted to the web site it appears
on. Meaning, if the ad is for, say, the Jeep Grand Cherokee, then the web
page must be about the Jeep Grand Cherokee. It doesn't work if the web
site is about Fords.

Here's why: using the above model, people who browse to the Ford page
*might* be interested enough in the Jeep to click through on the ad. If
the ad were payed by click-throughs, then the publisher just got some $$.
However, would a person looking into Fords *buy* a Jeep? Maybe. But *far,
far* fewer than would click on the banner.

The way I see it, non-targetted banners work best under the click-through
method. Semi-targetted banners are good for impression-based advertising.
But for per-sale model, the banner *must* be very specifically
targetted... otherwise it just doesn't work.

Well... as a web site publisher, that's my opinion of it. Personally, I
wouldn't ever put a per-sale advertisement on my site, though I favor
click-through over any other model (I know I'm unusual in that, but I
feel that advertisers are more receptive to click-through than to
impression, and the higher payment rate makes up for lower statistics).

Jason Elliss

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