NONE: ONLINE-ADS>> WEB-AD'98 COVERAGE: 3/17/98 - Yoder Sings New Tune,
ONLINE-ADS>> WEB-AD'98 COVERAGE: 3/17/98 - Yoder Sings New Tune,
richard_at_tenagra.com
Tue, 17 Mar 1998 11:55:56 -0600 (CST)
rpt. #10
Sender: owner-online-ads_at_o-a.com
Precedence: bulk
Web Advertising '98 Email Coverage
Yoder Sings New Tune, rpt. #10
March 17, 1998
This is the final in a series of 10 reports from Richard Hoy, who
covered the Web Advertising '98 conference in New York.
This coverage is archived at:
http://www.o-a.com/webad98/webad98-archive.html
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Yoder Sings New Tune
David Yoder, Anderson and Lemke
David Yoder, executive media director at Anderson and Lemke,
has always maintained that branding on the Web is not cost
as effective as branding in traditional media. He determined
this by measuring the Web point for point against other
media. This time, however, he tempered that opinion by
saying there is something to the concept of interacting with
a brand - something we have poor methodologies with which to
measure.
As he did in the past, David broke out three major points of
comparison between costs for the Web and for other media:
1.) cost of production
The cost to produce creative for the Web is far cheaper than
it is for most other media. According to David, the average
cost to produce a TV commercial is $300,000; for radio it is
$20,000; for magazines about $40,000; and for newspapers
about $35,000. Compare this to the Web, where the average
cost to produce a banner is about $2,000. Cost is the
reason, David surmises, why the banner will remain the
dominate creative unit on the Web. It allows both smaller
advertisers to play the game and larger advertisers to
inexpensively create multiple appeals.
2.) cost per thousand
The cost to buy online media is far more expensive, in
David's estimation, than other media. Prime time television
can be had for a $7 CPM. Prime time cable is about a $3.50
CPM. Network radio is a $2 CPM. Magazines cost about a $4
CPM. Newspapers cost about a $9 CPM. But the Web costs on
average a $30 CPM. David points out that if we define
branding as just someone being exposed to something,
traditional media is far cheaper. However, if we consider
branding interaction with the brand, the Web wins hands
down.
"It is a whole new way of thinking," he said.
3.) cost of reach
David said that reach in a medium has a lot to do with how
long people spend within that medium. He cited numbers form
Media Metrix showing that about 48 percent of the online
population spents less than one hour during the course of
one month. His point is that almost half of the online
population isn't online all that often. Looking at it
another way, David compared the reach of seven major
computer publications from Ziff-Davis to the reach of the
ZDNet Web site. The print publications reach roughly 6.5
million people at a CPM of $19. The Web site only reaches
about 3 million people and costs twice as much ($43 CPM).
However, David admitted he was surprised at data from Media
Metrix that showed the amount of reach Yahoo provides. The
graph is fairly linear - meaning that doubling your
impressions on Yahoo just about doubles your reach. The same
was true for the ZDNet Web site, SportsZone, and the USA
Today Web site. So the Web's reach, though not as large as
traditional media, is something that should not be
dismissed. And note that this is just reach in the home,
which is all Media Metrix can currently measure. There are
no figures yet on how this translates regarding business
use, but it is certainly hopeful that this trend would be
there as well.
Though the Web doesn't fair too poorly in the above
comparisons, it is seemingly not as appealing cost-wise to
other media. But while traditional media only allows you to
do "passive" branding, David pointed out that the Web allows
you to do "active" branding. People are in a much different
mindset - what David termed the "seeking mindset" - when
they are online. Therefore, he concedes that it may not be
fair to directly compare traditional media to the Web. We
many, in fact, need different metrics to measure the effects
of branding on the "seeking mindset."
Traditional metrics are based on impressions (or total
eyeballs) seeing the creative. It is also focused on what
the medium brings to the message and the prospect. David
said that maybe we need to look instead at the total impact
of a medium's attributes and a prospect's mindset. Does a
searching mind retain more and have greater involvement in
an advertisement? How do you define an "involvement"
impression? Does this "involvement" vary from one site to
another? And how can this "involvement" be measured? David
contents that these are the sorts of questions we need to be
asking to truly measure what is happening on the Web.
"We cannot and should not end up with evaluating the Web in
terms of the traditional measurements," he said.
This ends the coverage of Web Advertising 98. Thanks for reading!
======================================================================
======================================================================
This conference coverage is generously underwritten by:
--CLICKTRADE--
http://www.clicktrade.com/webad98
Link Partner Programs to reward other Web sites for linking to yours.
Joining ClickTrade is FREE. As a member, you can be an advertiser,
link partner, or both. Advertisers reward link partners on a
pay-per-click basis for linking to their site. Link partners earn
revenue for sending traffic to advertiser sites.
**********************************************************************
Advertiser Benefits: Link Partner Benefits:
-------------------- ----------------------
-Drive traffic to your site -Make money
-Save time; outsouce the process -Select link type(text, graphic, java)
-Flexibility of payout rates -Control where to place links
======================================================================
======================================================================
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