RE: ONLINE-ADS>> Sales Commissions vs. Ads

Scott Cherkin (scott_at_webgenesis.com)
Thu, 25 Sep 1997 13:18:41 -0400

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"Dr. Kenneth J. Henry" <ken_at_trainingpros.com> wrote:

>I fear that many sites will cease to exist if this type of advertising
>becomes the norm on the web.

The good doctor was referring to performance based pricing and the need for
many sites to return to CPM pricing. He was saying that without CPM
advertising many sites will go out of business...

Maybe many sites should go out of business. If you don't have a strong
business model you don't belong on the web and there will, most certainly,
be a shake-out in the industry in the near future.

I couldn't agree more, however, with the idea that the CPM model is best
model for most content-oriented sites. If a site can create critical mass
by producing great content, then the site has a case for asking for a media
cost. The seller has to make the argument why his/her site has more to
offer than just the clicks delivered to the advertiser's site. I am
talking branding here!

Seller's need to focus on the benefits of advertising on his/her site. Is
there value in being as associated with the content on your site as opposed
to someone else's? In order to receive CPM advertising, you need to
differentiate your site from the competition.

Complaining that performance-based pricing is going to drive you out of
business is not a valid argument for CPM pricing. Recent articles in Wired
and Ad Week help lend credibility to the branding abilities of the web.
Hopefully, this will make selling on a CPM a little easier. Check them out:
http://www.wired.com/news/news/business/story/7157.html
http://www.adweek.com/iqdaily/september/0922.asp

-Scott

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