NONE: ONLINE-ADS>> The $75 CPM that wouldn's die?
ONLINE-ADS>> The $75 CPM that wouldn's die?
Valerie Harrison (valerie_at_info-mine.com)
Sat, 24 Oct 1998 23:10:38 -0500 (CDT)
ROBERT WOODHEAD WROTE:
>>Lets assume you can buy ads at $1 CPM or $75 CPM. Seems to
>>me that the $75 CPM buy is only worthwhile if an ad view on
>>that site is going to generate the desired end resulted (the
>>almighty "conversion") 75 times more often than the $1 CPM
>>buy will.
AND PENG HWA ANG <ANGPENGHWA_at_PACIFIC.NET.SG> REPLIED:
>This assumes that the only variable is price. What of the
>possibility of competitor's presence--you buy into a site
>because the competitor is there. Or how about buying into a
>site to exclude a competitor?
>
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There is an aspect to this value of the CPM discussion that
has gone unmentioned. Namely, the demographic of the unique
visitor to the Site.
Audience value is determined by Number of visitors, the
focus of the Site to determine the demographic, income, age,
interest, etc.
If I sold widgets that cost $80,000 each and the Site was
www.widgetworld and was high traffic to those interested in
widgets, how many Clickthroughs would I need on my banner
(if in fact I received a 1% Sales result) to make a $100 CPM
worthwhile?
This is not an unusual advertising situation in print
publishing, radio, TV or whatever. If the magazine is
specifically written for accounting firms and that market
has demonstrated its high interest by paying for a
subscription, believe me, there are many companies selling
to accounting firms that will pay $5,000 for 30,000
"impressions" (readers). The value of radio and TV spots are
relative to the program it is bought around.
The only difference now in internet ad buying decision
perameters is that all other mediums are AUDITED and its
pretty hard to BS the agencies and advertisers.
I am praying that IAB, ABC, Neilson and the gang get their
act together soon, before I tear my hair out trying to
explain why we sell our Site at $100 CPM. Our traffic isn't
even very big but...we got valuable traffic...and they are
valuable to us 'cause they pay us to subscribe. The
companies who buy banners on our Site know our subscribers
are their "target" audience. Focused Sites have a 5%+
clickthrough because they are in front of the right
'eyeballs'.
All the professional DMers on this discussion list know the
score. One area that they have always been hightly skilled
in is "getting the best price" for any type of buy. They
love to make huge "shotgun" buys at very low prices because
anyone is a potential CD or cereal buyer. The best creme of
any ad buy is not to have to pay for it at all unless they
have already made more than enough sales to justify the cost
of the ad!!! (CPA) I admire them immensely, DM is a very
professional designation but it really is a separate
initiative than branding and focused awareness and sales
campaigns to defined audiences.
Valerie Harrison
valerie_at_infomine.com
www.infomine.com
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