Re: Text Banner Standards: Isn't it about time?

From: e/y/e/s/c/r/e/a/m/ - Adam Boettiger <ab_at_eyescream.com>
Date: Thu, 4 Feb 1999 07:32:30 -0600 (CST)

[Regarding the statement that the subscription model
generally does not work to support an email discussion list
or newsletter, Randy Cassingham wrote in part:]


RANDY CASSINGHAM <ARCIE_at_THISISTRUE.COM> WROTE:
> That is a sweeping generalization that I know to
> be false: I
> have a paid list, and it generated over a third of my
> (really quite good) income last year. I agree that my
> self-developed model is *unusual*, but the growth curve is
> up, with no end in sight. It would not surprise
> me to hear
> of others with similar success.
>
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

You are in the 1% minority on this one, Randy. I'm happy
for you. But I might point out that even those who are
successfully using the subscription model, such as WSJ's
email bulletins and service, are including paid advertising
to supplement the subscription model. If it was working,
why would they need to supplement it with paid advertising?
To generate revenue. Perhaps my statement that the
subscription model does not work for discussion lists and
email newsletters was fairly broad sweeping. I thought this
was common knowledge. ?? You may be one success case
using that model and if so, I congratulate you for making it
work.

As one listmember pointed out earlier in this thread, the
true test of the model would be asking yourself if you would
write a check right now for $25 per year to stay subscribed
to this list. I would and a handful of others would, but
the bottom line is that the majority of listmembers most
likely would not. Sad but true. If you have a subscriber
base of 7,000 and as a list owner you want to compare
revenue models - ad sales vs. charging a subscriber fee - as
methods of paying the bills associated with production, ad
sales will beat subscriptions hands down 99% of the time -
for now at least. It currently is far more lucrative to
have a publication with 7,000 members and accept one sponsor
than it is to reduce the size of the list to 700 people and
charge a subscription fee. Most list owners choose the ad
sales model. And yes, typically only about 10% of a list is
willing to change over from a free model to a paid
subscription model, even if the annual fee is really low. I
base this on my own list and the results of surveys taken by
other list owners.

There is also the issue of growing a subscriber base.
Whether you are generating revenue by an ad sales model or a
subscriber base model, the more subscribers on the list, the
more revenue generated. It is far easier to promote and
grow a publication's subscriber base when there is no
barrier to subscribe, such as an annual subscription fee.
Larger communities provide advertisers with greater reach
and publishers with more revenue.


RANDY CASSINGHAM <ARCIE_at_THISISTRUE.COM> WROTE:
> I've been online since 1982 and can think of a few. They
> are generally labors of love.
...
> Those
> self-promo spots aren't ads per se, but these newsletters
> are NOT selling ads to third parties.
>
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~


An ad is an ad is an ad. If it's an ad for their own
business, it's still a commercial advertisement - they just
aren't selling the space. I agree with you that they must
be labors of love. Who pays their throughput and ISP bills?
Even if they are supported by paid sponsors they are still
labors of love, if you've ever moderated a list. In 1995
those labors of love publications that are not interested in
taking on paid sponsors to cover production costs were far
more plentiful than they are in 1999. This is perhaps due
to the shift to commercialization on the Web and the
movement toward using the Web for business more than
education. Most people have accepted the fact that the Web
is rapidly becoming more commercial. In fact, that's what
this list is about: the discussion of how to use commercial
advertising online to promote a business.

I think you're missing the point: The issue is not whether
or not an ezine or discussion list *should* accept
commercial advertising. The issue being discussed is how
to move forward with a standardized format for ad specs that
makes it easier for agencies and advertisers to buy on text
lists like this one and others.

AB
List Moderator, I-Advertising
http://www.internetadvertising.org/

-------e/y/e/s/c/r/e/a/m interactive, inc.---------
adam boettiger, vp biz development 503/292-6987 x16 tel
mailto:ab_at_eyescream.com 503/296-0945 fax
traffic building | strategic partnering
new media planning | interactive direct marketing


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Received on Thu Feb 04 1999 - 10:53:07 CST