NONE: Re: ONLINE-ADS>> Low cpms mean death
Re: ONLINE-ADS>> Low cpms mean death
Rob Frankel (rob_at_robfrankel.com)
Mon, 5 Oct 1998 19:59:29 -0500 (CDT)
At 5:45 AM -0500 10/2/98, Robert Gordon wrote:
>As a content publisher
>we see banner clickthrough rates on www.theautochannel.com
>range from 0.25% to 8%...same site same exposure...should
>the 8% advertiser pay 32x more for an impression or the
>0.25% pay 1/32 of our rate?. A smart buyer will sure try,
>but not here buddy! We have invested millions of dollars
>into the content that appears in our site and I will be
>stupid if I let an agency grinder destroy our worth by
>insisting that ridiculously low cpms are the only way to buy
>Internet advertising.
Robert is absolutely correct. When you establish value, you
establish value. To cut your prices for no apparent reason
is to undermine your valuation efforts. So, in a strange
way, it makes a lot of sense to turn away business at a cut
rate price, whether you're a consultant or a web site.
Our list generates way higher than normal return rates. But
a CPM model would destroy us. If the prospective advertiser
wants results, he pay the rate. If he tries to whittle the
rate down, he walks.
Over time, if you stick your value in a realistic way, you
fulfill your own prophecy of value. That doesn't mean being
a stubborn pig, but it does suggest that you very often have
to establish your values through leadership, not market
pressure.
Finally,it really is true that different models work in
different scenarios. But the bottom line is that if you can
deliver what the prospect wants, you're wrth every penny --
and more.
Rob Frankel
Big Time Branding (SM) http://www.robfrankel.com
Business Opinion Columnist, Ziff-Davis Internet Business Magazine
Subscribe to FrankelBiz for FREE at:
http://www.robfrankel.com/frankelbiz/form.html
Telephone: (818) 990-8623 FAX: (818) 990-0428 -- ICQ:6427394
Toll-Free USA & Canada: 1-888-ROBFRANKEL Mailto:rob_at_robfrankel.com
========================================================================
------------------------------------------------------------------------
This week's Online Advertising Discussion List sponsors:
AdKnowledge, Liszt, and Mind the Store
7 out of 15 top agencies know that AdKnowledge improves web advertising
effectiveness. What are YOU waiting for? AdKnowledge. We make web
advertising work. http://ads02.focalink.com/SmartBanner/page/9751.2
---
Want 20-50,000 clicks/month? Sponsor Liszt, one of Yahoo Internet Life's
"10 Net Essential" sites. Slots open include Books, Chat, Downloads,
Jobs, Movies, and News: http://www.liszt.com/o-a-offer.html
---
ClickToBuy is an advanced e-commerce technology allowing Advertisers to
sell products directly from their banners or images. Call Michael Tingle
at 800-254-9992 or visit http://www.hotflyers.com/demo for more info
------------------------------------------------------------------------
========================================================================
Online Advertising Discussion List To Unsubscribe send UNSUBSCRIBE
http://www.o-a.com/ to online-ads-request_at_o-a.com
