NONE: Re: ONLINE-ADS>> Industry Duck and Cover?
Re: ONLINE-ADS>> Industry Duck and Cover?
Brad Byrd (brad_at_newgate.net)
Tue, 29 Sep 1998 09:41:41 -0500 (CDT)
Carol Dawson wrote:
>Of course they do----wouldn't anyone want a freebie. I'd
>want cost per action too. No commitment, I could send half
>baked copy (not investing too much), and get out whenever I
>wanted. No skin off my back. The publisher absorbs all the
>risk.
And Andy Bourland was quick to add:
>>On the contrary, Bill... Web site publishers understand the CPI
>and CPS model all TOO well: the marketer advertises for free,
>while the publisher makes little or no money. It's the DMers who
>need to figure an equitable, profitable way for publishers to
>promote their products to their audience.
> <snip>
>I have YET to hear of a SINGLE publisher
>who made out well on a CPI/CPS deal. Only the networks and the
>marketers.
>
I received several similar emails directly. Content
providers (host sites) all have the same complaint --
basically, they get ripped off when they try to implement a
CPA model because the advertiser acts like they get a
freebie, and there is no motivation for the ad buyer to
provide quality content. Hmm. Sounds to me like these
content providers need to better qualify these deals before
they sign them. However, this argument does not effectively
dismiss the concept.
Hello?! Maybe these content providers should INNOVATE. Try
this: set a bottom line CPM, with a target CTR and CPA
bonus built in (whew, talk about an industry slang-fest).
Example:
$10 CPM, target CTR 1%, CPA bonus 10 cents per click above
target CTR. On a $10,000 purchase (1 million impressions),
1% CTR is 10,000.
20,000 (2% CTR) = extra 10,000 clicks x 10 cents = $1,000
bonus.
In this example (which I am making up as I go along -- time
will tell) the advertiser pays 10% extra for a higher CTR,
if the site can deliver it. So ad buyers must plan budgets
in advance? Fine, then set aside $12,000 for this buy and a
ceiling to the bonus. If the site doesn't earn the money,
you can spend it next month. Point is, the site still gets
paid a base CPM so it doesn't get screwed, and is rewarded
if it can deliver an audience that is targeted enough to be
interested in the advertiser's offers. Reward good sites.
That's what we should be thinking about doing.
So, I say, advertisers want a cost-per-click model.
Beautiful. Figure out a permutation of the current model
that works for everyone and that empowers content providers
who can provide a targeted audience. The end result
(successful niche sites that are driven to provide targeted
audiences, and more advertising dollars thrown into the fray
to try a model to their liking) will be good for everyone.
Oh, and Mark Surfas says:
>IMHO, There are 3 camps here:
>
>1. Ad Buyers
>2. Ad Networks
>3. Content Creators / Ad Sellers
>
Close. 4, actually. We just do research for clients, and
make purchase recommendations. So I really have no vested
interest in any one direction, because I need both sides of
the equation for my market. The point in re-introducing
this model is to try to reach a middle ground. Which no one
seems much good at doing right now.
Thanks again to everyone for the feedback,
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:
AdKnowledge, The Mining Co. and CLIQNOW!/The 24/7 Network
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
---
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
---
CLIQNOW! Networks & The 24/7 Network. Buy reach & powerful brands:
*MoneyNet, UExpress Donnesbury, AT&T WorldNet, MapQuest*
Get these sites on your next buy. http://www.247media.com/umbrella.html
------------------------------------------------------------------------
========================================================================
Online Advertising Discussion List To Unsubscribe send UNSUBSCRIBE
http://www.o-a.com/ to online-ads-request_at_o-a.com
