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               Online Advertising Discussion List
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List Moderator:                                        Supported by:
Kevin Fadden                                              InterEdge
kfad_at_interedge.com                        
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April 27, 1996                                           Digest#0028
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            Here's what the running total of votes are for:
                      DIGEST v. SINGLE MESSAGES
                        11             3
In this Digest...

NEW
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CONTINUING
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        "Bulk Email"
                ~ Dave Reske

        "mailing list of U.S. ISP's?"
                ~ Jim Sullivan

        "Off Come the Gloves (was re: Yahoo and Proctor & Gamble)"
                ~ Cheri Sigmon
                ~ Mehmet Kurtkaya
                ~ peter temes
                ~ Kevin Fadden


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From: Dave Reske 
Subject: Bulk Email

Moderator,

I'd like to respond to Naomi Kockentiet's  Bulk e-
mail question. Aren't you concerned about the negative publicity 
associated with bulk email?  In addition to the response rate, you may 
want to consider how people feel about your organization after they 
receive an unsolicited email.  

One idea you might try is including options for people as they register 
on your Web site. For example you might ask if they want to receive 
information in specific categories.  If you email to people who have 
requested information in specific categories, it might help reduce the 
negative response.  


> ===================================
David Reske, President          Online Computer Market, Inc. 
reske_at_ocm.com                   313 Speen Street, Suite 202, Natick, 
MA  01760
http://www.directchoice.com    (508) 651-0070  x275

DirectChoiceú is the first one-to-one marketing application 
sofware for the Web.
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From: Jim Sullivan 
Subject: mailing list of U.S. ISP's?

In response to the post from Judith about a list of ISPs.

Boardwatch Magazine at http://www.boardwatch.com   publishes a book of 
all ISPs. I'm not sure if they have an on-disk version.

It's a good magazine too.

Jim Sullivan
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From: "Cheri Sigmon [ http://jit.com ]" 
Subject: P/I ad model - pros/cons - was p&g [Off Come the Gloves (was re: 
Yahoo and Proctor & Gamble)]



     => Hi, all ...

       Here's my take on the P&G fiasco:

     a - the upside: greater RISK for _potential_ greater rewards,
      which appeals to the 'greedy' side of human nature. < grin >
 
     b - the DOWNSIDE: this isn't _reality_! The WEB is NOT like
        the traditional "P/I" ad model, or "per inquiry." Usually
         you get this in 4 instances, which are as follows ...

       1) the providers just don't "know" any better (or care)

       2) they DO know better & are simply _greedy or desperate_

       3) they want to attract more attention by being different

       4) they cave in to pressure & "lose" in negotiations -
          IOW -- they "sell out" to the "big kahunas" 'cause
           they can't _justify_ VALUE they deliver otherwise.

       This will be a passing non-event, imho. Time will tell ...

         Cheri Sigmon     - york sc usa -    PRO Web Sites (tm)
        <                                                      >
         email: cheri_at_jit.com         http://jit.com/server.htm
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From: Mehmet Kurtkaya 
Subject: Off Come the Gloves (was re: Yahoo and Proctor & Gamble)

>From: noodle_at_plainfield.bypass.com (Raymond K Lemire)
>Subject: Click-Thru Advertising
>
>Kevin, I agree with you 100% concerning the Yahoo/P&G Click-thru 
discussion
>but for a very different reason.
>
>As a small business owner the thought of paying based on the number of
>visitors to my site is a very scary proposition. Especially if the 
visitors
>are part of the great unwashed masses (i.e. unqualified prospects).
>
>Going into an advertising situation expecting a price of $300 is one 
thing,
>receiving a bill for $3,000 or $30,000 would be something considerably
>different!

Well,  I am sure there will be a way to fix it: such as discarding the ad 
after
you reach a certain amount click throughs, or a trial period etc.

Cheers,

Mehmet Kurtkaya
Hotels and Travel Services in Turkey
http://www.xmission.com/~gastown/ebb/index.html
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From: peter temes 
Subject: Off Come the Gloves (was re: Yahoo and Proctor & Gamble)

Well, Kevin and I disagree.

First, on the specifics: the entire newspaper, TV and magazine industry 
is
in fact not run by CPM. CPM ads are indeed the large majority, but
especially when you look at new publications, new ad vehicles of other
sorts, and very traged vehicles, per-inquiry (or PI) ads are quite 
common.
I've been buying PI media, including a TV campaign running right now, and
lots of Newspapers, for quite a while.

Who goes for PI ads in traditional media? Direct response firms, who are
adding traditional media to direct mail efforts but don't want to lose 
the
measurability of mail, and others who frankly don't want to take the risk 
of
a specific vehicle, but will experiment if the risk is contained.

When I was told by an ad broker that I could get Toyota and Microsoft and
Netscape ads for the Daily Online Meida sites, I was thrilled, But then I
ran the numbers. The reason these big advertisers are willing to go on 
the
web and take a risk on CPM ads is that they pay so darned little. My 
feeling
is that web viewers are so deeply connected to the medium that we should 
be
paid a much higher CPM, not a lower one, than traditional vehicles. SO to
get only 10 or even 20 bucks per thousand is nutso cheap. SO we went o 
make
more. By charging a clickthrough to CatalogLink or Omaha Steaks,
low-presitge ads, for sure, I nonetheless make a lot more, becasue these
guys, Direct marketers to the core, mesure the value of each visitor to
their site, pay me a portion of it (which come out higher than the CPM 
model
for me) and we're all happy.

I don't care about the abstract principal behind CPM vs clickthrough. I'm 
in
this to make a living, and my point is that for a braod band of 
advertisers,
you'll either get no busienss at all, or inadvertantly off super-cheap
deals, if you stay with CPM.

Peace.

Peter
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From: Kevin Fadden 
Subject: Re: Off come the gloves

<<<>>>

>Well, why not ask for click-through only?  Advertisers want leads that 
are PRE-QUALIFIED.  Only the Web can do this in REAL-TIME while a lead is 
HOT.

Just because the Web can do it, does not mean the publisher -- from an 
economic standpoint -- can.

>This is VALUE.  This is what advertisers pay for.  If you can do this 
for them CHARGE them.  If your site regularly draws the kind of people 
they want to get in front of, CHARGE them for the visitors as well as the 
click-through folks.  However, if you have a new site with no track 
record, but hope to attract a certain clientele, click-through only 
billing is an excellent tool to draw those initial advertisers.  However, 
if you are a good business person, your agreements will comprehend that 
you could become successful, and that the click-through only strategy 
will then hurt your revenues.
>
>I can't understand why you are upset at your customers for wanting value 
and service.  You have to sell them on your value.  If convinced, they 
will pay.  Those ad-revenue-based sites that don't put together a good 
business model will die.

I'm upset because, by and large, they do not want to pay for all of the 
VALUE they are getting -- namely, brand exposure. As a seller of 
advertising, I certainly AM willing to go to great lengths to make sure 
my clients' ads are being seen by the right people, BUT, I expect to be 
paid for that, and I expect to be paid for the impression, as well as for 
the click-through. In other words -- nobody is getting anything for free, 
dammit. That's what the click-through only people are asking for -- free 
impressions -- and they will get them over my dead body or businees, 
whichever goes first.


<<<>>>

>Wow! This seems to be a touchy subject.
>
>Actually, the whole thing is pretty obvious - Kevin's right, impression 
pricing 
>makes sense for both advertisers and publishers.
>
>Except that:
> * some publishers are charging way too much per impression
> * a sneaky advertiser can use click-through for free benefits
> * there is a way that click-through pricing works for publishers
>
>For those interested in the click-through vs. impression debate, I've 
put 
>together a nice hyperlinked piece that explains why impression pricing 
is 
>*BEST*, but why some folks might want click-through pricing.
>
>   Impression vs. Click-Through Pricing
>
>Let me know what you think.

Those of you have not checked this out should. If my rantings and ravings 
are too much for you, this gives a well-thought out and civil explanation 
of why impression based is better than click-through based advertising.

- Kevin Fadden (kfad_at_interedge.com)
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