NONE: Re: ONLINE-ADS>> Is targeting a bad thing when everyone does it??
Re: ONLINE-ADS>> Is targeting a bad thing when everyone does it??
Valandra, Kent (kentv_at_research.wimc.com)
Wed, 27 May 1998 11:11 -0800
Richard,
We have little to worry about in targeting overkill. Consider the hundreds
of millions of impressions and then the kind of targeting that occurs daily.
One client wants all the warm bodies he/she can get, another wants senior
MIS execs, someone else is after parents of children under age 8. Everyone
has value to someone.
The sliding scale of the marketplace will dictate what value everyone has to
each marketer, but every component will have value. I've always
suggested that the base value of impressions was only $1 or $2 per thousand
and that the real value should be added at click-through, or in a better
measurement entertainment, at transaction. I'm betting the market will
pressure these kinds of pricing structures in the same way new standards
from CASIE are forcing sites to use a more realistic measure for ad
impressions. In the end, in a market glut, the buyers will dictate the
terms.
Here is my view of a structure using cpm's that reflect value:
High Tech Decision Makers $70.00 per thousand cpm.
Professional Managerial $40.00 cpm
Parents of children under 12 years $30.00
Anyone going to a general purpose site: $2.00
Of course the CPM's are only step one, but every pair of eyes on the Web is
valuable. The demographics are too good to ignore. The next step is cost
per click.
Nobody does branding at high cpm's. There are target media buying
techniques that allow branding to run at very low costs. Higher costs mean
there has to be more value and that's the underlying challenge of the Web
and the attempt to hold the line at CPM's.
Kent Valandra
<kentv_at_research.wimc.com>
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