NONE: ONLINE-ADS>> Banner Ad Campaign Scalability
ONLINE-ADS>> Banner Ad Campaign Scalability
jgehman_at_creativelabs.com
Thu, 10 Sep 1998 05:48:40 -0500 (CDT)
Joe Bartling wrote on a thread titled "Order Conversion":
>>I agree with you about the $1/CPM. We've just launched a
>new venture, ADSDAQ, that is based on $1-$3/CPM rates for
>run-of-network ads. We are selling ads in million run lots.
>Average click-thru now is about 4/1000 (.25-.75/CPC).
First, it seems CPMs continue to erode and $1 CPMs are a
reality--perhaps Cost Per MILLION is coming! In addition to
Joe's confirmation, the few emails I got were all echoes of
agreement. No rants.
Moving beyond CPMs, Joe and I have been having a very
interesting offline conversation. The crux of the discussion
involves the scalability of banner advertising. In our
experience, we've been able to scale from 100's of
thousands, to millions, to 10's of millions impressions per
month with no impact on click-thru performance. All the
while, CPMs are reduced, causing CPC and efficiency go up.
Our rules of engagement are: 1) never buy more than 10% of
inventory; 2) always serve inventory evenly; 3) update
banner creative periodically.
On the other hand, Joe was relaying some of his experiences
and questioning whether it is actually possible to scale
banner buys into the tens of millions. Since he and I are
only N=2, let's open it to the floor.
What have advertisers and ad supported sites found as
campaigns have scaled from millions to tens of millions
(anyone doing hundreds of millions of impressions on one
site or network per month)? Does some level of saturation
occur? Is it after a certain percent of inventory is
allocated to the same campaign? Is it related to banner
burnout?
Joel Gehman
Internet Marketing Analyst
Creative Labs
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