NONE: Re: ONLINE-ADS>> Price of E-mail newsletter ads
Re: ONLINE-ADS>> Price of E-mail newsletter ads
Cliff Kurtzman (cliff_at_tenagra.com)
Mon, 13 Apr 1998 18:04:48 -0500 (CDT)
Rob Frankel wrote:
>CPM works if you're shotgun blasting a list. If the list is really
>targeted to a specific profile, CPM goes right out the window. I price
>FrankelBiz based on the type of psychogrpahic we attract. The culture of
>the list is business/action oriented, so they respond better than say, a
>20,000 member list with no specific focus.
I don't quite buy this. My guess is that if you doubled the number of
subscribers to your list you would probably charge more for an ad. If you
are really pricing the list based only on the psychographic you attract,
then you would have to price it the same whether or not you have one or one
million subscribers. I think that what you really are getting at is that
some phychographics can command a higher cost per subscriber than others
for certain advertisers, which is true.
>
>Put it another way: if you can get 50 sales from a 1000 name list or 20
>sales from a 20000 name list, which is the better investment?
That depends on what the cost per impression or cost per subscriber is for
those lists. If the 1000 name list is priced at a cost per thousand
subscribers of $100 and the 20000 name list is priced at a cost per
thousand subscribers of $1, then the 20000 name list only costs me 1/2 as
much per sale as the 1000 name list. Depending on what a sale is worth to
me, one, both or neither of these options might be a good investment.
>
>Finally, I get a sharp pain when I hear about lists that charge by the day.
>If there's anything about traditional media that might port to the web,
>it's the notion of frequency. That's why I sell months, not days.
That is going to depend on the list and the offer. In some cases, 99% of
the response is going to come from the initial exposure, which is why
offering an advertiser a cheap test run can be a very bad deal for the
publisher. In others, frequency is very important. I've found it hard to
generalize something like this.
--Cliff Kurtzman
The Tenagra Corporation
http://www.tenagra.com/
281/480-6300
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