NONE: Re: ONLINE-ADS>> Industry duck and cover?
Re: ONLINE-ADS>> Industry duck and cover?
William Greene (William.Greene_at_Grizzard.com)
Thu, 1 Oct 1998 11:25:12 -0500 (CDT)
Andy Bourland <andy_at_clickz.com> wrote:
>
> On the contrary, Bill... Web site publishers understand the CPI
> and CPS model all TOO well: the marketer advertises for free,
> while the publisher makes little or no money. It's the DMers who
> need to figure an equitable, profitable way for publishers to
> promote their products to their audience.
"Equitable" and "profitable"? If I'm selling the video of
Bill Clinton's testimony, and I give the site publisher 20%
of GROSS sales for running my ads in his UNSOLD inventory,
and I sell several hundred thousand, why isn't that
"equitable" and "profitable"? (Those aren't made up numbers,
by the way. Very recent cold, hard facts.)
And if that publisher was making more money on the CPA deal
than he was getting for CPM ads... what do YOU think he
should do? :-)
> The people who make out are the networks who sell the CPI/CPS
> inventory (taking a 20+% chunk of the action) and the marketers
> who advertise for free. I have YET to hear of a SINGLE publisher
> who made out well on a CPI/CPS deal. Only the networks and the
> marketers.
1) A "20+% chunk of the action" for marketing ad inventory
on sites that might not be able to reach advertisers
effectively otherwise is a good deal;
2) The marketers most certainly do NOT advertise for "free"
- there is COST involved for them (thus the "C" in
"CPI/CPS"). And that COST equals the publisher's PROFIT on
inventory that would otherwise have paid him NOTHING;
3) I'm interested to hear about the CPI deal that ClickZ had
with NetCreations, that you raved about back in May. Weren't
you paying $1 per subscriber? Did it not work for you? Did
it work too well? Did a network get 20+%? Was the publisher
of that site upset at giving you a CPI deal? Was Bill just
leading Monica on? (oops, I got carried away...)
> Until that inequity is resolved so the publisher wins as well,
> the DM model will continue to sputter online...
>From what I can see - as a marketer, a site publisher, and a
network rep - the only "sputtering" is coming from die-hard
branding advocates trying to keep those
artificially-inflated CPM rates flying high... while DMers
are trying to make sure that *everybody* can make a few
bucks...
*wiping the coffee sputters off of my shirt*
;->
--------------------------------------------------------
William Greene
Moderator, Direct Marketing Online discussion list
http://www.directmarketing-online.com/
Director of Internet Marketing,
Grizzard Communications Group - A Top 10 DM Agency
http://www.grizzard.com/
404-635-5784 / 800-241-9351Ý/ mailto:William.Greene_at_Grizzard.com
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