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NONE: ONLINE-ADS>> Charging by actual users instead of potential ad views

ONLINE-ADS>> Charging by actual users instead of potential ad views

cornishproductions (cornish_at_snet.net)
Fri, 5 Jun 1998 21:22:19 -0400

What is making me crazy is the difference between
Magazine/TV advertising and web advertising. Magazines and
TV sell advertising based upon the greatest number of
potential ad views. If you actually calculate the real cpm
of a magazine ad or a tv ad, by this I mean, calculate the
number of people who actually see the ad, and then the
number of people who are called to action, well Magazines
might be charging a much greater CPM. A trade magazine
sells 100 pages of ads to a subscription base of 49,000
professionals and gets about 1,000,000 in ad revenue. How
many of the 49,000 subscribers sees every ad? Advertisers
are paying for a potential audience. To make advertising on
the web similar, then as a web publisher I should sell ads
based upon the number of unique visitors I get every month
to as many advertisers I can fit on my site, regardless if
anyone actually see the banner ads. If my site gets 60,000
unique visitors each month, then I should sell 60,000
potential ad views to 100 advertisers. I should make more
money than the magazine who only has 49,000 readers.

Dan Cornish
http://www.designarchitecture.com
"content rules"

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