re: Buy $40,000, Sell $60,000

From: Christine Ayman <christine_at_elliance.com>
Date: Tue, 8 Jun 1999 18:26:52 -0500 (CDT)

Rob Fisher presented an interesting scenario, but I think
there is a big reason this isn't happening: A banner
advertisement on a portal site does not necessarily
guarantee any certain amount of traffic. The page would
still need to be advertised by other means.

If the agency owning the "Resource Page" wants to charge
$15,000 per ad, that page is going to have to generate a lot
more traffic than what it gets from a portal banner ad.
Yahoo charges $25,000 for its homepage banner, and it's
often the top trafficked site on the Net, never out of the
top 10. A "Golf Resource Page" isn't likely to generate
that kind of traffic, so I think it would be hard to find
advertisers willing to pay that price.

Even if you charge less and get more advertisers, you're
still in the same situation. You'll have to sell the
advertisers on the traffic that the site receives, and many
advertisers are interested in demographics. If you want to
attempt to get demographics on your site's users, you'd
better offer them a lot more than a page with a bunch of
advertisements. Now you're talking content. At this point,
what you have is what everyone else has: a website, be it a
"resource", business or whatever, just trying to make a
living. Even classifieds sites (a page with a bunch of
advertisements) often offer much more than just the
advertisers' ads.

As for the portals refusing it, why should they? They'll
take your money. Heck, they would support you. If it
actually worked, imagine how many people would be buying up
banner ads...but they're not. And if they're not running to
buy banner ads on a portal, they're not going to run to your
site to buy an ad for one percent of the traffic the portal
gets. If you could actually get that kind of advertising
revenue from doing nothing more than a banner ad, more power
to you. But it's not likely.

Christine Ayman
Director of Web Marketing
christine_at_elliance.com
ELLIANCE <the agency (e)partner>
*Providing first class Web services to agencies and their clients*

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Received on Tue Jun 08 1999 - 19:20:23 CDT