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NONE: Re: ONLINE-ADS>> Industry duck and cover?

Re: ONLINE-ADS>> Industry duck and cover?

Kevin Frazier (Kevin_at_FocusOnU.com)
Thu, 24 Sep 1998 14:55:20 -0500 (CDT)

Brad.Byrd wrote:

>The question: how much are you willing to pay, per action
>(clickthrough), for 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...

It isn't really a question of what we the advertiser are willing to pay.
It is what the seller of this space can afford to charge. The problem with
this model is that sellers of ad space have to surrender to the quality and
effectiveness of a given creative in order for a campaign to be cost and
time efficient. How could you set the price of this model? The only way
it could work is you pay more the longer your ad is viewed without a click,
and less when your ad is clicked more often. Needs to have some sort of
sliding scale applied. I think you'll find at the end of the day that the
% of click which represents dollars paid will probably not differ much from
the CPM model in the end. Seems like a lot of extra work to end up in the
same place.

Kevin Frazier

http://www.FocusOnU.com
kevin_at_focusonu.com
"Do you want to be right, or do you want results?"

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