NONE: Re: ONLINE-ADS>> Top 10 Controversies?
Re: ONLINE-ADS>> Top 10 Controversies?
Heidi Kay (hkay_at_flycast.com)
Tue, 12 May 1998 11:19:52 -0700
On May 9, 1998, Keith Pieper wrote:
> I am trying to determine what the top 10
> areas of controversy are in the online
> marketspace. I have identified 2 so far:
> 1. Counting methodologies
> 2. Pricing models (Cost per click vs Cost per impression)
> What are some other issues we struggle with and debate
> on a daily basis as online marketers?
Keith,
We have been studying these issues as well and identified a
few additional areas of controversy in the online
marketspace:
CONTROVERSY #1. Some websites claim they are all "100% sold
out two months in advance at $40 CPM." Yet we find that
after considering bartering, overdelivery, and make goods,
less than 30% of inventory is typically sold, and nearly
100% of ad sales are below rate card.
CONTROVERSY #2. Many larger advertisers continue to dump
dollars into $60 CPM (or higher) sites that deliver click
rates under 0.5%, reasoning that if you are going to buy web
advertising, buy only premium sites. However, simple math
shows that advertisers can halve their effective CPMs and
double their reach by dividing their budget over both
premier, branded sites and cost-effective run of network or
run of category buys.
CONTROVERSY #3: Is web advertising just for technology and
e-commerce companies, or does branding really work on the
web? The fact is that while technology and e-commerce
companies are breaking new ground, Q4/97 ad dollars came
from computing (33%), consumer-related (26%), financial
services (11%), new media (11%), and telecom (9%). Studies
from the IAB and others showed that even a single banner
exposure can boost brand awareness and purchase intent. But
this kind of branding won't work the same for everyone, so
it's imperative to test before you invest.
CONTROVERSY #4: The web promises to offer pinpoint targeting
and one-to-one marketing. Many sites and networks allow
advertisers to target narrow demographics based on SIC
codes, like soybean farmers or railroad engineers. Sounds
great in theory. In practice, however, if you try to create
a buy around such a demographic, you will probably get too
few impressions to satisfy your buy. Despite the fact that
buyers are swimming in impresssions, they are often not
swimming in the right impresssions.
--------------------------------------------
Heidi Kay
Product Manager
Flycast Communications Corporation
181 Fremont Street, Suite 120
San Francisco, CA 94105
http://www.flycast.com
tel: 415-913-1568
fax: 415-977-1009
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