NONE: Re: ONLINE-ADS>> Low CPM's Mean Death
Re: ONLINE-ADS>> Low CPM's Mean Death
Rob Frankel (rob_at_robfrankel.com)
Wed, 7 Oct 1998 14:03:44 -0500 (CDT)
At 5:49 PM -0500 10/6/98, MMG - John Audette wrote:
>Whew! No offense to Rob, but the ex-stockbroker in me is
>astounded at how simplistic that statement is.
Simplistic? Or just a refreshingly uncomplicated approach?
Then John Audette wrote:
>In well established, efficient markets (the stock market for
>example), value is established purely by that old Internet
>publisher bugaboo -- supply and demand.
Ummm, wrong, kimosabe -- stock market values are hardly the
proof of your argument. In fact, it proves just the
opposite. After all, more people are drinking Coca-Cola
today than in January, yet the stock price is 33% below its
January value today. If anything, the market proves my
point -- people buy into percieved value. That's why dopes
pay inflated prices for interent stocks that may turn a
profit in 2006 (if they're lucky), while rock solid issues
like General Motors (p/e of what, 7?) sit there like rocks.
Then John Audette wrote:
>Regardless of where your product or service lies on the
>value continuum, in efficient markets pricing is *still*
>determined by that annoying supply and demand. Prices are
>higher at the high end of the continuum simply because the
>added value has reduced the number of competitors, hence a
>reduction in supply.
Au contraire, my neighbor to the north: If what you sell is
really good, you can comand a higher price for it. Way
higher than the forces of scarcity would dictate.
Especially on the web, where everybody is full of theories
but not much substance, the people who produce command
better prices.
No kidding, the reason why people pay my rates (which are
higher than industry standard) is because the product is
better, not in lower supply.
Then John Audette wrote:
>It's all just Econ 101. Hubris or whistling as you walk past
>the graveyard will not change things in the long run. And in
>the long run isn't it better to build a business plan on
>market realities rather than on how we wish it could/would
>be?
Of course, but nobody here is in fantasyland. Maybe it has
more to do with defining the markets you pursue and the kind
of business you want. I think that by targeting what you
want, on the terms you want it, you do far better than
trying to throw your net over the entire industry just to
see what you catch.
Or, I could be wrong.
Rob Frankel
Big Time Branding (SM) http://www.robfrankel.com
Business Opinion Columnist, Ziff-Davis Internet Business Magazine
Subscribe to FrankelBiz for FREE at:
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