NONE: Low CPM Solutions...some ideas to chew on.
Low CPM Solutions...some ideas to chew on.
Daniel Arnall (darnall_at_straylightlc.com)
Mon, 12 Oct 1998 13:09:49 -0500 (CDT)
For weeks I've been watching the Low CPMs Mean Death thread
with a high level of interest because it is one of the only
issues that cuts to the core of our New Media businesses.
In fact, as the discussion turned toward S & D versus
"premium pricing", I wondered how long it would take before
some crack online publisher with a "targeted" online brand
would start hacking ad-space and increasing prices. You see,
I think no matter where people fall on the issue of
assigning value to a commodity (which is what the online ad
market is today), decreasing supply or increasing demand is
the only way you see a growth in value.
I got an apt demonstration of this with an email notice I
received yesterday from ClickZ Network publisher Andy
Bourland. In addition to a number of other changes, ClickZ's
great direct-to-email publications will have only 1/3rd of
the ad space they used to starting on October 12. They've
gone from six ads to only two ads. They're even pulling two
ad slots off their web-based reports.20
I don't pretend to have an intimate knowledge of ClickZ or
their motivations for making these changes to the ad space
on their sites, but I think their decision deserves some
credit for being beneficial to all of ClickZ's constituents.
Their readers have a more uncluttered and focused experience
with fewer ads to digest. Their advertisers get a "quieter"
forum in which to tout their products. Their sales people
have more valuable real estate to sell and more urgency with
which to sell it.
I think what Andy is doing is a fantastic example that the S
& D camp might just be right here. ClickZ is a prime example
of a "premium price" site that's making some very
supply-side decisions to provide more value to everyone
involved. Maybe this is what everyone needs to be doing.
I'd love to hear from Andy as to the thinking behind their
decision and from others who have something to contribute to
the SOLUTIONS side of this debate.
-------------------------------------------------------------
Daniel Arnall
Marketing Director -- Straylight, LC
A Learfield Communications Company
darnall_at_straylightlc.com
206.444.0050 tel
206.444.0053 fax
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