NONE: Re: ONLINE-ADS>> Top 10 Controversies?
Re: ONLINE-ADS>> Top 10 Controversies?
Heidi Kay (hkay_at_flycast.com)
Thu, 14 May 1998 08:57:09 -0700
Stan Wilson < stanw_at_dejanews.com> wrote:
> Most buyer's (let's hope) look beyond
> your "simple math" when making their buys.
> Anyone can double their reach at half the
> price (or less), but now who is that second
> half reaching? Most likely it's reaching
> people who don't care nearly as much about
> your product. Real "premium" sites are
> premium because they've isolated a focused,
> influential audience for marketers to hit.
Stan,
I don't agree that Run of Network reaches "people who don't care nearly as
much about your product." If your product is suited to a general audience --
such as car owners, parents, music fans, or computer shoppers -- then why
not include a RON buy as part of your overall media strategy? You're still
reaching people who "care" about your product, just not when they're surfing
the big sites. On the smaller, cheaper sites, your ad may be one of only
about 10 ads running at any time, as opposed to one of 500 ads running on
the larger sites. Your ad won't be swamped out by your competitors' ads,
and, as a result, you'll have a higher share of voice and a larger presence
on these smaller sites.
My experience has been that a Run of Network buy across enough sites always
uncovers individual sites that deliver an unbelievably good results. Many of
these sites are ones you probably would not otherwise consider. We call
these sites the "hidden gems." By increasing reach and budget efficiency,
these hidden gems are a beautiful complement to our buyers' highly branded,
high CPM anchor sites.
I think we've hit on yet another controversy in this industry: Does ROI
include just measurable items, like clicks or widgets sold, or should it
include branding as well?
Let's consider two sites: a premium site at $40 CPM and another site at $10
CPM.
-- If you care only about clicks or widgets sold, you would need a return
four times greater on the $40 site than on the $10 site. That means the
viewers from the $40 site must be either four times more likely to click or
spend four times as much than the viewers from the $10 site (depending on
how you measure ROI).
-- If you care about ROI and branding, or presence on a particular site,
then maybe the $40 includes the $20 CPM that you're willing to pay just to
appear on that particular site (branding). In that case, you would need a
return that's only twice as great on the $40 site than on the $10 site.
That's because half of your ROI from this site is clicks, half is branding.
The choice of branding versus efficiency simply depends on what you're
trying to achieve with your campaign, and that analysis is where I believe
media buyers provide real value and expertise to their clients.
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
========================================================================
------------------------------------------------------------------------
This week's Online Advertising Discussion List sponsor:
24/7 Media
Great sites. Flexible buying. Creative sponsorships.
Check out the fastest growing online advertising network.
24/7 Media -- Always Serving You http://www.247media.com/sites.html
------------------------------------------------------------------------
========================================================================
Online Advertising Discussion List To Unsubscribe send UNSUBSCRIBE
http://www.o-a.com/ to online-ads-request_at_o-a.com
