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Old 02-26-2006, 03:45 PM   #1
thebizbucket
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Default Private CPM banner deals

Hey All,

I am new to mainstream advertising world. Background is online but in other arenas

I am starting to look at privately purchasing CPM banner deals. The first I have purchased is from a friend for $1.10 usd CPM (uniques, on a 120x600 slot on his community site). It does about 70 CPM a day (70,000 uniques).

I am curious if this is a good rate to be paying. Not only that but is this sort of private banner deal a common thing, or is one normally forced to go through a broker ?

Was reading around this mroning a bunch. Seems like a good forum. Hope to be around more often..
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Old 02-27-2006, 03:39 AM   #2
Czar

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Welcome to Geek/Talk.

Direct buys are very common in the industry and are often a good idea. Targeting down to the individual site level through a network can often be just as costly, if not more so, while leaving you with less control and more restrictive payment terms. As a publisher, I love the networks and use a number of them a great deal. I would also eagerly use them as an advertiser if I wanted to manage a campaign through a single, simple interface with one budget to spread across multiple sites and if reach or pure metrics were my chief concerns. However, for advertisers who just want to reach a handful of sites and who are happy to monitor the placements individually, buying directly is a great idea.

Selling directly often provides a publisher with greater CPM returns, while attracting ads that are thematically or demographically targeted to his/her audience. Buying directly provides very strong targeting capabilities and helps to build a rapport with a site's audience and its editorial staff, which can yield very impressive returns.

Personally, I think that $1.10 gross CPM for a 120x600 spot is a bargain, but do ask for figures on the number of pageviews/unique that your target site generates. If your ad will be seen 30 or 40 times by the average unique visitor, the rate may be excessive, whereas if it's seen 3-7 times at the most, the frequency could be sufficient to stimulate a response, without burning out through excess impressions.

Hope this helps.
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Old 02-27-2006, 01:21 PM   #3
thebizbucket
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Hey Czar,

Thanks for the input. And the welcome.

I was worried about uniques as well, so am trying to do a limited trial with the site. I have an ad rotation database that just loads in with an iframe and rotates on unique IP so that I can see how many views each visitor is worth, and make sure I get my $ worth in terms of unique ads to visitors.

My guess is if a person sees an ad and don't click it its time to move on. No point in ramming 1 deal down their throat.

For now I am going to do a test of turning CPM $ into CPA sales.

One thing I am finding that is unfortunate is a lot of offer&incentive CPA programs don't pay on non US people. Do you know any good offer/incentive CPA programs that pay on non-US (euro/can/uk specifically) - but no location constraints is best. For my filtered traffic.

Thanks!
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Old 02-27-2006, 03:54 PM   #4
Steve_S
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Arrow Tips on your "Arbitrage"

Welcome and best of luck. Czar has given you great advice

You said: "My guess is if a person sees an ad and don't click it its time to move on. No point in ramming 1 deal down their throat."

Actually, your Campaign on the other site should rotate about 3 different creatives to a given IP/24 hour session. Each IP sees all 3 creatives. Each of your creatives should have different copy, colors, and a unique call to action. Watch this closely on your end for about 50-100K impressions and then begin to adjust the weighting of your 3 creatives. After about 200 K impressions take the best performing creative and add 2 more brand new creatives to your Campaign.

This stuff is certainly not a "science" but my own confidential data suggests that this procedure will optimize your results.

Continue to tweak your "landing page". Better yet, post the URL of your mainstream sties landing page hear. A great tip for you but please don't tell anyone is a custom landing page on your site which says "Welcome funky duckie dot com visitors to.....

If your landing page can't "sell" then your Campaign is a waste of money and certainly not the fault of the other sites.

Good luck and HTH
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Old 02-27-2006, 05:11 PM   #5
thebizbucket
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Steve S --

Very interesting method. I have some statistics models that we have written for other traffic that uses Poisson approximation in order to determine which ads are worth continually displaying. However we've never used it on traffic like this, I like working by hand for a while before turning the stats engine on - and your method sounds good. Also making them feel special by clicking in from another site is a super good idea. People love to feel special. I will add that in immediately. And start tweaking the landing page as they come in. I'll post links once its live in case anyone wants to lend advice

I am buying 70,000 impressions daily from them so i will be able to find results quickly..
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Old 02-27-2006, 07:35 PM   #6
Czar

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I agree with Steve regarding frequency. One impression often isn't enough, while eight or more displays can quickly tire on a viewer. Don't panic if your creatives are being seen by a single visitor five or so times on average. That could be just enough impressions to encourage the visitor to read your message, and perhaps to trigger an immediate response.
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