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NONE: Re: ONLINE-ADS>> Ad Banner Campaign Jam

Re: ONLINE-ADS>> Ad Banner Campaign Jam

Leo Sheiner (leo_at_netcomuk.co.uk)
Fri, 7 Aug 1998 10:46:13 -0500 (CDT)

"Jennifer Ruffin" <jnobles_at_cweb.com> wrote:

<snip>

>I'm in quite a Jam...I've been running ad campaigns on 2 major search
>engines and the way we measure results is by the cost per click...now...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) My questions are:
>
>(1)...is it reasonable to assume I can get a $1.50 cpc?
>

<snip>

I was going to let this one go unanswered since I assumed that
Jennifer's management expected her to spend $1.50 per click so
why upset their expectations? However there were so many replies
today pointing out that she could get it for less I felt obliged
to put my oar in as well. I personally do not think it is
reasonable to expect $1.50 per click - I actually think it is
outrageous. But I also know many people are paying that and more.
They tend to come to us once they realise they cannot make it pay
at that rate.

We - like some other banner networks - sell clicks directly at
between 10 and 20 cents. In our case I can vouch for the that
they are pretty well targeted and clean despite costing so much
less. But we are also runing CPM campaigns. And they are pretty
instructive. Curiously when Safe-Audit was launched almost two
years ago, we had facilities for tracking everything from CPM
through to pay per sale campaigns. But we positioned ourselves as
the pay by result network and tried to find campaigns based on
pay per sale. Couldn't find any takers then. We were just too
early for CPI deals. Fortunately we did get pay per click
campaigns and they have grown like topsy.

Then in the last month after all this time we have suddenly been
getting a rush of CPI deals plus we have finally used our CPM
tracking and reporting code for paid business. On the first deal,
we were given a banner by Speedway that had a very high CTR 5% in
average. We offered $1.60 CPM and over 200 sites (Safe works like
a market) decided to pick up that campaign in the first day. On
the second day we were already delivering 250,000 impressions a
day with a 5% average CTR which has now risen to 6% in average
CTR. Work it out, they were getting clicks that were costing the
advertiser less than 3 cents!!!

Very strange. We could never have got that take up if we were
paying per click. The minimum level for a selling banner is 10
cents and that rate doesn't get much traffic. There is a lesson
here, that if you do have a banner/product offer that generates
high CTR, it is better to pay by CPM.

Leo Sheiner <leo_at_netcomuk.co.uk>
Buy into 281 million pageviews p.m. on 7,436 host sites to gain
the results you want. Free consultancy and animated banners
Why advertise using Safe? http://safe-audit.com/adpromo.html
Why host banners for Safe? http://safe-audit.com/hostpromo.html
mailto:leo_at_global-m.com Telephone +44181 346 0770 Leo

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