NONE: Re: ONLINE-ADS>> Ad Banner Campaign Jam
Re: ONLINE-ADS>> Ad Banner Campaign Jam
Rick Bruner (rick_at_x-summary.com)
Thu, 6 Aug 1998 06:34:32 -0500 (CDT)
Jennifer E. Ruffin wrote:
>It
>is my goal (and my bonus is also attached to it) to keep the cost per click
>(cpc) down to $1.50...is that unreasonable? To attain this I usually have
>to receive about a 10-12% click through rate (which I am receiving on one
>search engine but not on the other) and a low cpm (which I'm already
>receiving $30-40cpms)
I'm sure you're going to get lots of responses to your questions, but I
just want to point out that I think you're doing your math wrong. If you're
paying a $30 CPM and getting a 10% clickthrough, you're paying only $0.30
per clickthru, not $1.50. That is, with a 10% clickthrough, out of every
1,000 peole who see the banner, 100 are clicking on it. If you're paying
$30 to attact 100 clickthroughs, that's $0.30 per clickthrough. That's very
good. If you can afford to spend $1.50 CPC, you could pay a $30 CMP and get
a 2% clickthrough rate and hit that target.
>(1)...is it reasonable to assume I can get a $1.50 cpc?
Very much so. If you can afford to spend that, many sites would be ready to
take you up on a guaranteed clickthrough pricing model. Even for less, I'd
say.
>(2)...is it reasonable to expect a 10-12% click through rate?
No. That is a very high clickthrough rate. The industry average these days
seems to be around 1%. With very good targeting (keywords, high affinity
with content, technical targeting such as neural networks, and so on) 10%
and higher it's not unheard of, but requiring it as your minimum average
across all your advertisements may be setting yourself up for failure.
Besides, as I pointed out, if all you need to do is pay $1.50 or less CPC,
you don't need to have such high clickthrough rates.
>(3)...are my cpms ok?
They're reasonable, but I wouldn't call them "low". With a network like
Flycast or an auction service like Adauction.com, you can get decent ad
property for $5 CPM or less. Most sites are very negotiable. You could
easily average $20 or less. Obviously, targeting ads and buying on better
sites gets more expensive.
>(4)...Is controlling the cpm something that is in my control? Any
>suggestions on how to control it?
Absolutely. Most sites are doing well if they sell out 50% of the ad
inventory. Just be firm and you can negotiate *way* below rate card with
most sites (except smart ones who would rather pass up short-term revenue
for fire-sale prices in order to preserve the value of their inventory; but
most can't afford to do so). Buy a small run once at ratecard, then come
back and tell them you can get a much better deal at one of their
competitors, so what discount can they offer you.
Or here's a tip: look at the sites that are selling their inventory for
fire-sale prices on discount networks like Adauction. Then go to them and
say, "Listen, your ratecard says your CPM is $30, but I see that after the
15th of the month, you sell the same inventory for $5 CPM on Adauction. We
both know you give Adauction a 30% cut on that, so why not keep the 30% cut
for yourself and just sell me the space for $5 CPM right now."
I think that above argument should send sudders thru the spine of anyone
selling their inventory thru discount services like Adauction, because
you're just telling the world your ratecard is nonsense.
Generally, you'll get better prices buying in the middle of the month, as
sales folks are desperate to make their monthly objectives by then, for any
price.
Hope that helps.
Rick
---------------------------------------------------------------------
Rick E. Bruner, strategic Web marketing consultant
Author, "Net Results: Web Marketing That Works"
http://www.amazon.com/exec/obidos/ISBN=1568304145/executivesummaryA/
Editor, Executive Summary, http://www.x-summary.com info_at_x-summary.com
Free weekly Net marketing analysis, profiles, news and advice
rick_at_x-summary.com (415) 351-2489
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