NONE: ONLINE-ADS>> What is a typical price for targeted banner adverts
ONLINE-ADS>> What is a typical price for targeted banner adverts
Ian Blackman (IBlackman_at_compuserve.com)
Thu, 18 Jun 1998 07:04:08 -0400
What is a typical price for targeted banner adverts?
The internet offers a number of opportunities in evaluating
markets for financial services. A particular approach to
market research is described in a recent academic paper
Lockett, A D., Blackman, I. D., Holland, C., NaudÈ, P
(1998), "Using the WWW as a Medium for Marketing Research in
Financial Services: The Case of Xenon Laboratories".
Working paper at Manchester Business School, submitted to
The 32nd Hawaiian International Conference on Systems
Sciences, January 1999.
As a contrast to the main case used in the paper , we
estimated the cost of using banner advertising to attract a
specific target segment to a market research questionnaire.
The average cost of banners on business travel sites was
estimated to be $30 per 1000 impressions. The estimate was
made by reducing the rate quoted on the DoubleClick web site
of $40 per 1000 views for targeted advertisements.
The estimate does not tally with the average price of less
than $3 per 1000 impressions that DoubleClick appears to be
achieving. The estimate of the average price achieved was
calculated from the information in the press release
summarising DoubleClick's first quarter results. (Date:
Thursday, April 23, 1998 Source: Business Wire) The
assumptions and calculation are shown below.
Why is there such a big difference between the quoted price
and the price achieved? Are only relatively small purchasers
of advertisers paying anything close to the quoted price
with the largest advertisers achieving very large discounts?
I would be very interested in suggestions on how to estimate
a realistic market price for targeted banner advertisements.
Yours sincerely,
Ian Blackman
iblackman_at_xe.net
Assumptions used in Calculation
Income = $13,004,000
Average add views served per day in December 1997 = 32 million
Average add views served per day in March 1998 = 60 million
Estimated average add views served per day in first quarter =
50.7 million
Estimate of add views served in first quarter = 90 x 50.7= 4,560 million
Estimate of average price per views = (13,004,000/4,560,000,000)= 0.28
cents
or $2.8 per 1000 views.
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