Re: ONLINE-ADS> How to SELL web advertising

treknews_at_juno.com
Fri, 17 Apr 1998 19:33:58 -0400

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Leo Sheiner <leo_at_netcomuk.co.uk> wrote:

>Targeting is
>very important when you pay per CPM, less so if you pay per click
>providing your message is right. My view has always been pay per click
>and let your message do your targeting.

I couldn't agree with this more. If you're selling widgets, and you
advertise on a widget-oriented site, then paying CPM is fine. But, if,
using someone else's example, you advertise your widget sales on my Star
Trek site, then you'd be wasting your money advertising CPM - your
click-through rate would be rediculously low.

However, at the same time, while your click-through rate is going to be
next-to-nothing, your conversion rate is likely to be *very* high -
because the only people who are going to click on your banner from an
unrelated site are people who are looking to buy widgets.

I believe that if you advertise on a targetted site, CPM is the best way
to go, but expect your conversion rate to be a little low compared to
click-through rate (because you're probably not the only widget retailer
who's advertising on the widget-related site). If you advertise
untargeted, then click-through is the best way to go, and you can expect
a much higher conversion rate.

Does anyone have any statistics to back up my theory here? It makes sense
logically, but I don't have any stats to prove it.

Jason

Jason Ellis
TREKNEWS.COM

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