ONLINE-ADS>>"average" representation costs

Will Finkelstein (willf_at_netgravity.com)
Fri, 24 Jul 1998 10:07:25 -0500 (CDT)

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Richard and readers:

In attempting to do a study of the financial return (net present value)
of a web site, I have a somewhat naive question. I'm not looking for
quotes, proposals, resumes, etc. I'm also not looking for all of the
agencies to post their rates to the list (I know that'll never happen!)

I'm wondering if anyone could provide me with an "average" formula or
rate that would be used to calculate 3rd party repping. Further, I'm
wondering if anyone could indicate the "average" full-burden cost of an
internal online advertising sales rep, and the relative effectiveness of
each of these alternatives.

I would assume that at some point of scale (ad impression traffic and
effective CPM rate), it becomes more cost effective to bring ad sales
in-house. While my goal is not to find this combination of data
explicitly, if anyone has a general feel for where the crossover
happens, I'd appreciate it if you could clue me in!

Thanks so much for your help,

Will Finkelstein
NetGravity, Inc.

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