NONE: ONLINE-ADS>> Industry duck and cover?
ONLINE-ADS>> Industry duck and cover?
Brad Byrd (brad_at_newgate.net)
Wed, 23 Sep 1998 09:33:08 -0500 (CDT)
Wow! I'm really surprised at this list. Last week I
submitted a post entitled "Cost-Per-Action Price
Convergence", where I asked for feedback from members about
this model and how it might be priced...
I got ONE. One reply.
Come on folks, what's the deal? I get the feeling that ad
agencies are just avoiding this issue altogether because its
"too touchy" (ie. media buyers and content providers don't
get a guaranteed commission up front). But face the facts
-- advertisers *want* this model. I'm still convinced it
can work, and think that if someone is creative and builds a
tenable solution they'll have access to advertiser dollars
that CPM sites can't get...
So let me rephrase the question. We'll do a little
role-playing, and try to think like the advertisers whose ad
dollars we'd love to be able to earn....
Here's the scenario:
----------------------------
You buy ads for P&G. Ultimately, you want to sell products,
but you know that you're probably not going to do that (sell
soap, or whatever) on the web. So you're looking for
(*gasp*) a quality online branding option. You rather not
buy banners by the impression (CPM), because you're
convinced that banners can't deliver the kind of attractive
message to your consumers that you are really looking for.
You would much rather get viewers to your website because
you've got much more space and flexibility there to deliver
a compelling message, plus customers will be captive, and
not distracted by their mail or news or whatever. Captive
audience, quality content deliver, controlled experience --
thats what you want.
You want to pay per action -- only when someone gets to your
website via clickthrough. Now, remember, the ROI
calculation in this instance is difficult because you are
really using the web for branding, and not necessarily to
sell products directly. But you obviously respect the value
of a clickthrough to your website over a basic banner ad.
The question: how much are you willing to pay, per action
(clickthrough), f or this delivered traffic? Basically, I
guess, its similar to the GoTo.com model. The CPA model
could cost you much more than a CPM model... but, of course,
the message delivery is much more qualitative too, and you'd
probably be willing to pay for that...
So, what do you expect the price convergence to be? I've
seen articles in DM discussions where the CPA is between
$1-3, but that seems high -- I'm sure that's based on an
order conversion model and not a branding model.
PLEASE think this over quickly and give me some feedback.
I'll compile the responses and post the results, and if I
get enough feedback I'll post comments on the web for those
interested.
Thanks in advance....
Brad
Brad.Byrd
Director of Business Development
NewGate Internet
mailto:brad_at_newgate.net
http://www.newgate.net
(415) 331-3127
========================================================================
------------------------------------------------------------------------
This week's Online Advertising Discussion List sponsors:
The Mining Co., ValueClick and AdKnowledge
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
---
ValueClick can guarantee you instant revenue on 100% of your ad space
For non-exclusive, flexible solutions that work w/ existing CPM sales,
contact us today: ValueClick http://www.valueclick.com/members.html
---
7 out of 15 top agencies know that AdKnowledge improves web advertising
effectiveness. What are YOU waiting for? AdKnowledge. We make web
advertising work. http://ads01.adknowledge.com/SmartBanner/page/9751.2
------------------------------------------------------------------------
========================================================================
Online Advertising Discussion List To Unsubscribe send UNSUBSCRIBE
http://www.o-a.com/ to online-ads-request_at_o-a.com
