NONE: Re: ONLINE-ADS>> Sales commission vs. ad revenue
Re: ONLINE-ADS>> Sales commission vs. ad revenue
Mark Montgomery (markm_at_virtualfranchise.com)
Mon, 22 Sep 1997 18:50:29 -0700 (MST)
>It's fine to use the "pay per sale" model to *augment*
>an existing campaign, but to use that model as the
>only means of promoting your site is like diving off
>the deep end when there is no water in the pool...
>
>Adam Boettiger, Moderator
>The one ad that we ran
>would have cost them $75. It directly resulted in over 800 sales (a
>response rate of less than .3% on a per-view basis). The arrangement
>was that we would get $20 per sale. They were happy. I was definitely
>happy. If we could only work out more of these! <grin>
>
>Sharon Tucci
These seem to be very conflicting statements. Unless my math is
very bad in my increasing age, I don't think Sharon jumped off
into a waterless pool.
The advertising industry needs to understand that they cannot
dictate business models to the Web any more than their clients.
It must evolve in win/win scenarios and each industry must
be very flexible or they will miss out entirely, slow
the evolution, or both.
While I've spent much of my career on studying and executing
brand campaigns, I also have experienced many projects where
the brand wasn't the issue and in some cases recently on the
Web, the brand is actually a negative when promoting a high
quality product within a corporate banner who may not have
such a hot brand.
It's not a zero sum game folks, it's about meeting very specific
objectives. Beware, protectionism hasn't been working for any
industry for the last decade, but product quality and
efficiency has.
Adverising agencies need to be keenly aware that buyers and
their bosses and their bosses boards have not been altogether
content with traditional advertising for some time (with
obvious specific exceptions).
Perhaps it's past time for more niche experts in online
advertising? Those that don't understand brand building
should stay away from it, and those who don't understand
anything but brand advertising should stay with what they
know.
Anyone who claims that the other doesn't have a valid place
in E-commerce loses credibility in my eyes.
Mark Montgomery
Founder
GWIN- Global Web Interactive Network
http://www.virtualfranchise.com
markm_at_virtualfranchise.com
Voice: 1-520-632-4119
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