 
In the beginning, advertising on the Internet meant buying banners. The
first banner ads were sold by Wired magazine, and the idea caught on like
wildfire. Now the banner ad is far and away the dominant form of
advertising on the Internet.
From the outset, banner ads were sold the way advertising is
traditionally sold: on a per-exposure basis. Exposures are bundled into
units of a thousand, and priced on a "cost-per-millenium" basis, which
is abbreviated as the familiar CPM.
But as the Internet has evolved, so too has the Internet advertising
industry. In particular, marketing agencies with a background in direct
response advertising have moved in and challenged the CPM establishment.
The direct marketers offer advertisers a new choice: instead of paying
for exposures, advertisers can now pay for actions.
Recently the topic of alternatives to CPM was raised on the Ad-Marketing
Discussion List, hosted by the Netrepreneur Exchange of the Morino
Institute. Ad-Marketing is an invaluable place for advertising buyers
and sellers to keep up with the changing state of the art of Internet
advertising.
List moderator Mitch Arnowitz challenged the list members to identify
the various alternatives to CPM advertising, and came up with the
following list:
Cost Per Conversion
Cost Per Click-Through
Cost Per Inquiry
Cost Per Action
Flat Rates
Sponsorship
Cost Per Acquisition
Cost Per Lead
Cost Per Sale
Barter
True enough, but where does this leave the advertiser? Certainly, the
advertiser can negotiate deals with individual publishers on this basis.
But if an advertiser wants to buy any significant amount of advertising
with spending endless amounts of time negotiating deals, she has to find
vendors who sell these services.
To help advertisers negotiate this complex world, I have put together a
basic guide to buying ads on a non-CPM basis. I extend my thanks to the
members of the Ad-Marketing Discussion List for their assistance. If you
have suggestions to make this guide more complete and useful, please
send them to me.
Sponsorship/Flat Rates
* 24/7 Media: $.50 per click; minimum buy = $10K
Cost Per Clickthrough
* Directories
* Adbility: Pay-Per-Click Advertising Networks
* Networks - Fixed Price
* 24/7 Media $.50 per click; minimum buy = $15K
* Adflight Click Network
* Advertising.com $.45 -.60 per click, $.55-$1 targeted
* Flycast $.40 untargeted, $.60 targeted
* Safe-Audit $.10-.20
* ValueClick $.30
Cost Per Lead/Inquiry/Acquisition/Subscription
* Directories
* Adbility: Commission-Based Advertising: Multi-Vendor & Pay-Per-Lead
Networks
* Musictus.com: A guide to pay-per-lead advertising networks
* Networks - Advertiser Sets Price
* Affinia
* Bach Systems $.40-$3
* Cyberbounty $.35-$6
* DirectLeads
* TransAct!
* WebSponsors.com $.40-$21
Banner Ad Barter/Exchange
* Directories
* Adbility
* Networks
* Microsoft LinkExchange Banner Network (2:1)
* SmartAge Smartclicks (2:1)
This article was reprinted with permission from by Bob Fertik
The i-Progress Report
copyright 2000 i-Progress
http://www.i-progress.com
It may be reprinted with permission
i-Progress does Internet fundraising, publicity, and advertising for progressive candidates and causes.
________________________________
This article was provided by Web Ad.vantage, Inc. (www.webadvantage.net), a creative Internet marketing, promotions and public relations firm specializing in strategy building and implementation.
Ph: 410-297-9495. |