NONE: Re: ONLINE-ADS>> Is targeting a bad thing when everyone does it??
Re: ONLINE-ADS>> Is targeting a bad thing when everyone does it??
Chris Redlitz (Chris_at_Adauction.com)
Mon, 1 Jun 1998 08:26:30 -0700
I wanted to add a few additional thoughts to this discussion
since it is a subject that we address on a daily basis. We
believe there is tremendous value in expiring inventory
(targeted or run of site) and an efficient vehicle for
offering that inventory can help both publisher (site) and
advertiser as the market continues to grow and mature.
Many quality sites do not have the luxury of selling a large
percentage of their overall inventory and they are selling
only a portion of their targeted inventory. A significant
amount of premium inventory goes unsold and expires each and
every month. If certain parameters are placed on that
expiring inventory to differentiate it from normal rate card
buys without putting it in a run of network pool, then the
advertiser can still reap the benefit of limited targeting,
exposure on selected quality sites and pay a substantially
reduced rate.
And the site can receive a more acceptable cpm that does not
dilute the value of their normal rate card deals with a very
low cost of sale.
Heres an example of how we work and the parameters that we
put on the sites' inventory: Adauction.com is an open
auction format that runs at the end of each month featuring
specific "lots" of inventory from specific sites that will
run for a 30 day period the following month. The sites
featured and the amount of inventory available may be
dynamic each month so the site is not locked into a certain
percentage of their inventory. (As a rule we do not offer
more than 20% of a sites overall inventory). Each site has
the option of setting an opening price and how much
inventory they want to allocate to the auction channel
limiting their exposure. Buyers have the opportunity to
select from a dynamic variety of sites with the mix of sites
changing on a monthly basis. If advertisers have
discretionary budgets they can come away with some quality
inventory at some great prices. The cpms range from $5 to
$15 in this format which has proven to be an acceptable
"fair market value" return for most sites and a good value
proposition for media buyers.
As inventory moves through the sales cycle there is an
opportunity to present it through the existing sales
channels with both advertiser and publisher benefiting. Most
of a sites inventory should be sold through a direct sales
force or a network receiving the highest cpm and offering
the most targeting capabilities. A portion of the remaining
unsold inventory should be offered through an automate sales
channels at a reduced rate before it expires to get the best
return possible. If the inventory is positioned properly in
each stage, a site can sell a greater amount of its
inventory yielding greater incremental dollars and
maintaining a sustainable cpm level. On the other hand, the
advertisers can allocate a portion of their budgets to
securing the best ROI from quality inventory.
Sincerely,
Chris Redlitz
V P Media Sales
415-255-6903
http://www.adauction.com
"Media Buying Made Simple"
Our next auction: June 25th
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