NONE: Re: ONLINE-ADS>> Low CPM's Mean Death

Re: ONLINE-ADS>> Low CPM's Mean Death

Mark Montgomery (
Fri, 16 Oct 1998 09:46:28 -0500 (CDT)


>you get the "brand building", but if you don't get something
>else too, you might as well advertise old media where you
>know what you are getting for your money.

Well now Ray, hold on just a second. I was one of the early
proponents of the click-through model for just the reasons
you point out:

>Which is fine if you are selling
>automobiles, but a drag if you are selling sneakers.

So, I think it's important to once again clarify that
investors in anything show different returns for a variety
of reasons. And the point has been made here many times that
brand building and sales are designed differently. They are
both valid.

However, let me say this; I know far more about who is
visiting our network and why than any other medium I've ever
used and I've tested them all.. I mean all, even the signs
in the upscale hotel bathrooms (recommend men's above
urinals in men's and opposite mirrors -backwards in
woman's;-). (New media could use some humor-even bad humor
right now).

Seriously though, I've been tough on new media advertising,
but because it's not diverse enough due to 'software
thinking', rather than 'business modeling' thinking. Direct
marketing does compare fairly well but the functionality of
the medium is by far more informed than broadcast. The
intimacy of interactivity is invaluable for those wanting
the truth. The problem is most buyers aren't seeking the
truth, they are seeking to 'convert' still. Education works
with intimacy, converting doesn't.

No, the primary problems to date with expectations is
misunderstanding the medium and refusal to accept reality.
Here is just one example we published today in the
E-Commerce section of our LOOKOUT!, a news and market
intelligence product soon to go premium.

Merrill, an online skeptic, now plans an Internet lure

ìItís a real sea change for us. We are now beginning to
understand that [the Internet] is much more than a
convenient service. Itís a core part of the way we
communicate with clients and a core part of our business
strategy.î Maddy Weinstein, Merrillís senior vice president
for strategic development in the firmís brokerage division


COMMENTARY: This is typical of the experience we've seen
from many giant companies: 1) They see the Internet as a
threat and in the case of traditional brokerages and many
other industries, rightfully so. 2) They discover that
despite their size and often times arrogance, they cannot
stop evolution. 3) Once #2 sinks in and is accepted up to
the board level, the company finally begins to search for
maximizing the situation.


Recently ClickZ reported from the Forrester conference which
is arguably among the best we have. My commentary to our
Net_Business forum was: "I can't believe that after all of
this time, fortune 500 companies are still at the early

The medium has real challenges, chief among them is to
create standards while maintaining diversity and flexibility
as it evolves, but regarding marketing research, and
therefore knowledge based decision making, it's primary
limitation is the capabilities of the content network
management and the education of the buyer and of course the
agents in between, human or otherwise.

Mark Montgomery

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