NONE: Re: ONLINE-ADS>> Reports of my death...
Re: ONLINE-ADS>> Reports of my death...
Joe Bartling (joe.bartling_at_spiderware.com)
Tue, 29 Sep 1998 11:36:28 -0500 (CDT)
Mark Surfas wrote:
<snip>
> I'm watching the ad buyers here try to convince each other
> that the $1 cpm is here (and briefly at that as we
> theoretically move down to the 10 cent cpm, etc ) and that
> they are scoring some manner of coup in finding sites that
> will sell banners as cheaply as possible.
Well, the trend *is* toward lower CPMs at higher relative value. Our
advertising network business plan at ADSDAQ (http://www.adsdaq.com) is
based on delivering quality advertising to english speaking,
non-pornographic websites in the $1-$3/CPM range. We sell all of our
ads in the high end of that range, million impressions at a time.
<snip>
Nonsense. All it
> means to me is that they are taking the easy way out by
> using a metric that invokes a kneejerk response. Their
> argument goes like this: "You can't convince me that your
> eyeballs are better than anyone else's, so cheaper is
> better".
>
> The odd man out here is the Content Creator, IMHO. The
> attitude here seems to take the content creator for granted,
> which I believe is a mistake and here's why: Sites with
> great content can and will attract a passionate audience
> that will potentially fit into various demographics that
> will make sense for various advertisers. Sites with poor
> content will attract "surfers" that will not be back.
>
This is a Price Club vs. Nordstrom scenario. Price Club has hords of
people looking for "good enough" merchandise in bulk at good prices.
Nordstrom has many less people looking for exclusive specialty
merchandise at very high prices (relatively). Interestingly enough, I
see the same type of cars in the parking lot at Price Club and
Nordstrom, so I'm not sure that the site has anything to do with the
inherent quality of the shopper, or how much they spend. I tend to
spend about the same on a trip to Price Club as a trip to Nordstrom.
Its just when I come out of Nordstrom I have a cute little bag with a
tie in it, and when I go to Price Club, I have to lower the seat in my
SUV...
Now use this as an analogy for one high cost, content-specific websites
vs. a network of "good enough" quality sites.
The problem I see for advertisers (at least bulk advertisers), is that
they have a product, a 468X60 banner, for example, that looks the same
on both sites. Chances are that the viewers (at least today) meet most
of the demographic "eyeball" criteria and have the same cars in their
driveways, or put their pants on the same way...
You can spend $3,000 on a million ad buy on our network and get 2-5%CTR,
vs. 60,000 impression at $50/CPM across ten sites and get 10%CTR.
Results: CPC of .06-.15 on the big buy vs. .50 on the targeted buy,
with a lot more costs to manage and oversee the campaigns.
> I'm here to tell you that I believe it's going to take hard
> & savvy work on the part of ad-buyers to identify a rapidly
> moving target: the high-value online content partner.
That sound like an awful amount of work. Most high-value online content
partners I've found can't scale to larger campaigns.
<snip>
>
> Here's the Napalm:
>
> Some Ad Networks and Some Ad Buyers have entered into what I
> will call an unholy alliance:
We call it a Price Club or a Wal-Mart alliance!
>
> The Ad Networks don't own or create content - they simply
> take a split of the sale so they are far less vested in
> seeing a strong ROI. SELL SELL SELL is all that matters....
> and price is of secondary importance. The Ad Buyers place
> primary importance on PRICE.
>
The higher ROI we get for customers. the more they are willing to pay.
Believe it or not, we still have a limited supply of impressions on
quality sites. So, we have to sell the supply at the "highest" price an
advertiser is willing to pay. When we sell at any price, we leave
quality, value (and margins) on the table...
> Lazy Ad Buyer Meets the Ad Network Sales guy with tons media
> for sale that he/she knows little or nothing about and
> simply wants to turn into a commodity. If he/she is selling
> a commodity then it's old-boy network / relationship
> creation time. I admire this from a distance - this is
> simply free enterprise at work where the buyer can't
> distinguish the difference between a commodity and a
> possible brand.
>
Lets, face it, anything sold in the billions (like banner ads) *is* a
commodity... Thats why we started ADSDAQ :-)
Joe Bartling
ADSDAQ - The Banners That Pay!
http://www.adsdaq.com
703-293-7339
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