NONE: ONLINE-ADS>>
ONLINE-ADS>>
(no name) ((no email))
Mon, 14 Sep 1998 10:41:56 -0500 (CDT)
To: online-ads_at_o-a.com
From: Kevin Frazier <Kevin_at_FocusOnU.com>
Subject: Re: ONLINE-ADS>> Order conversion
Joel Gehman wrote:
>If you think $1 CPMs are "awfully close to free," please
>send us your billing address--we'd like to forward our $1
>CPM invoices directly to you. Tens of millions of
>impressions per month still add up :P There are lots of
>million dollar budgets out there being spent on "close to
>free" banners. Don't confuse cost per unit, with cost...
Of course the sellers of $1CPM will make money, but the
issue still pending is the target and the time it will take.
Not for the sellers of that space, but the buyers looking to
get results with nominal budgets. The real question is what
would my return be on spending $200 at $1CPM as opposed to
$200 at 50CPM. Is the target as good? Are the % of
click-thrus as high? This isn't an attack on anyones site
that offers 1CPM, I merely want to know if the results can
be furnished as quickly and offer the same value. I am still
not convinced. Joels points regarding large budgets over
time are valid and make sense, but what about small budgets
with little time??
Joel Gehman wrote:
>Why would anyone use an un-targeted, un-interactive banner
>as a test campaign for a "more interactive, highly targeted"
>campaign? For the test campaign to be meaningful, the two
>populations need to look and behave the same. Otherwise,
>the test will have provided no insight into the target
>audience.
Not all of us are fortunate enough to have a Creative Labs
budget. A static banner still provides a cost effective way
for small businesses to test and market our goods. As we
hone our tag lines and better reach our market we will be
generating more sales, which will enable us to afford the
luxury of a more interactive approach. Again my points are
really focusing on the majority on the web... small
businesses.
Joel Gehman wrote:
>The trouble? It's much easier to beat the 0.5% CTR goal
>than the 5.0% CTR goal. It's much easier to beat the 1%
>conversion rate goal than the 5% conversion rate goal. My
>money is on the $1 CPM...
With that reasoning it's more cost effective to use free
banner exchanges, cause it's easier to get something for
nothing. There are sites that cost more but may target
effectively and efficiently. They charge more because they
know their target audience, and can deliver a higher CTR.
I'm not saying $1CPM don't or won't work, but they are not
necessarily the best or most effective. Search engines
wouldn't charge the rates they do if they couldn't provide
better targeting and higher results. To me the price is
consistent with the audience, and the more focused and
understood the userbase is, the higher the cost.
Joel Gehman wrote:
>No research has ever been able to validate that the eyeballs
>on a $50 CPM site behave any differently than the ones on a
>$1 CPM site. Fact is, there are only 20MM US HH on the
>Internet. Average Internet HHI is north of $60K; around 60%
>have some college. Sure, at ground zero these 20MM Internet
>HH probably look different. We're not at ground zero...
>If you are spending $10K+ per month on advertising and
>averaging more than a $10 CPM, we should talk. You can
>likely double your performance *and* reduce your spending.
I believe research <is> providing validation and some sites
are getting to know their audiences better. That is the
whole beauty of this medium. You have an opportunity to
interact with your audience and get to know them. Many of
them are glad to give you information about there needs if
you deliver the content they are seeking. I realize many of
the folks on this list are marketing experts and surely have
more statistics than I. I am a small business owner, who is
looking for ways to advertise with a small budget
effectively. I'd be happy to have 10k to spend over the
year. Am I the only one looking for answers for the largest
growing sector on the net... small business? Is $1CPM the
answer for the small budget advertisers looking for small
buys with enough results to make it worthwhile?
PS. Our site isn't selling advertising... we are looking to buy.
Kevin Frazier
http://www.FocusOnU.com
kevin_at_focusonu.com
"Do you want to be right, or do you want results?"
========================================================================
------------------------------------------------------------------------
This week's Online Advertising Discussion List sponsors:
The 24/7 Network and The Mining Company
CLIQNOW! Networks & The 24/7 Network. Buy reach & powerful brands:
*Reuters News, The Mining Co., Wall St. Sports, Jokes.com*
Get these sites on your next buy. http://www.247media.com/umbrella.html
---
QUESTION: What has 5,000 fingers and has grown 44% since April? It's been
called "a Yahoo! on steroids," and it's spreading fast across the web.
ANSWER: The 500 Expert Guides at http://MiningCo.com
------------------------------------------------------------------------
========================================================================
Online Advertising Discussion List To Unsubscribe send UNSUBSCRIBE
http://www.o-a.com/ to online-ads-request_at_o-a.com
