Re: ONLINE-ADS>> Flat rate or CPM?

Steven Heath (sheath_at_fox.nstn.ca)
Tue, 31 Mar 1998 17:21:23 -0700

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> We were
> considering switching to a CPM model, but in order to generate the same
> revenue we would have to charge a much higher CPM rate than is considered
> average.

Hmm, first thing I do when I get offered a flat rate period of time buy is
this:

1, Ask what the site is prepared state will be my min. page
views/impressions over period.

2, Whip out my trusty calculator and do cost/(views/1000)=CPM

3, Grin to myself and think, 'what a steal' or laugh myself silly over the
asking rate. (Yes, sometimes it works out to market rate but not often)

4, If former ask for contract if later explain (but no more than few mins)
why at that rate why I will never do a buy even if " ... because our
advertisers
know exactly who is looking at our site, and are willing to pay for those
eyeballs."

Fixed price is a nice way to get smaller buys and buys direct from
companies. However, I hate to say this but when I run across a site only
doing fixed price then as often as not they are not professional
(exceptions apply of course) and often do not even have 2 clues to rub
together about what it takes to support, service, and otherwise an online
ad program.

Steven Heath
General Manager - Western Division
GreyInteractive Canada

Phone: (604) 687-1001 Email: Steven_Heath_at_grey.net
Web: http://www.grey.net

Canada's only complete Interactive Marketing Agency

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