NONE: Re: ONLINE-ADS>> Yippee For Yahoo!
Re: ONLINE-ADS>> Yippee For Yahoo!
Robert Gordon (bgordon_at_theautochannel.com)
Sat, 10 Oct 1998 10:27:23 -0500 (CDT)
STEVEN HEATH <SHEATH_at_FOX.NSTN.CA> WROTE:
>So, what does this all mean? Well...would I rather sell 20% of my
>inventory (that is forever being 'refilled') at $20 a unit or 50% of my
>inventory at $10 a unit.. hmm... you do the math...
Lets see now ....if all the creative people at advertising
agencies worked 24x7 then their effective hourly rate would
be about $1.50 per hour...that's fair, ok I think I'll
contract with that agency for some work at their effective
hourly rate, about 10 hours worth ...that's $11.50..why
won't they be thrilled to take the order, their inventory is
perishable. Sounds silly, but many believe this is the
criterion to price the Internet. It is a publishers
responsibility to try to deliver an advertisers message in
as effective context as possible. Getting orders at a fair
rate from advertisers who appreciate the impact and
editorial worth of a site and then selling out the reaming
inventory at low prices is a quick way to make no one happy.
How many of you out there would continue flying on an
airline whose flights are always filled up with chicken
carrying passengers? The short term revenue generated by
filling all those empty seats...will all but guarantee that
the only passengers who would continue to fly that airline
are those who will pay a fare that results in an
unacceptable ROI...that airline will be history. Publishers
must control the rates for their sites, buyers have no
investment or stake in the sites success or failure. The
elevation of the supply and demand pricing argument into the
pricing norm results in a "all Internet advertising is the
same" buying philosophy. How come some agency guys who
charge $ for their time have no respect for true on-line
publishers? "You can't make commission on Internet space
buys if there ain't no good sites to buy!"
Robert Gordon
<bgordon_at_theautochannel.com>
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