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Old 01-11-2001, 08:57 AM   #1
Czar

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Join Date: Aug 1999
Location: Gold Coast, Queensland, Australia
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Thumbs up The Future of Burst!

Minutes ago, a message went out to all Burst! members outlining the network's current state, as well as its outlook for 2001.

As you might expect, the newsletter was written in an encouraging tone to build confidence. It didn't however, gloss over the fact that the industry is in the gutter at the moment.

Burst! supports the research carried out by Jupiter and a few other agencies suggesting that online banner ad spending will continue to grow during the coming years, and that the market previously dominated by dotcom advertisers will be balanced through the increased online spending of established brands.

Unlike Engage, which has clearly stated its increasing focus on the software market, Burst! has maintained that it will remain a media agency, and that its publishers are its focus.

Although some may see this message as 'too little, too late', the fact that Burst! went to the trouble to reach its publishers this way is encouraging.

Hopefully this note marks the low point in the CPM drop-off, and that things will advance from here on.

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Czar
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Old 01-11-2001, 10:52 AM   #2
Ralph Slate
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Unhappy

I have to say, Burst has been the most professional network that I've used. Sure, they've had their technical glitches, but they at least do seem to care about the publisher, and the little guy too.

In hindsight, they took an interesting tack to the "too low CTR" problem -- they optimized their network to reward sites with higher CTR instead of just tossing out sites that had low CTR. In other words, the companies that tossed based on CTR didn't have the means to discriminate where they sent the ads -- so they just threw out the sites that weren't cutting it. Burst took the more interesting approach.

Hopefully they and I will be able to weather this storm, and things will turn around soon.

Ralph
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Old 01-15-2001, 11:35 AM   #3
SSacobie
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Unhappy

The Burst letter seemed to me as though it was mostly damage control, though it was written in an encouraging way. I've always seen high defaults from Burst, ever since mid-1998, and have noticed they've somehow gotten worse still (up to 99%) of late. They're improving now, but the situation isn't exactly great.
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Old 01-15-2001, 06:34 PM   #4
Czar

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Hi SSacobie, and welcome to geek/talk http://geekvillage.com/ubb/smile.gif

You could be right. There's no doubt that this message had an undertone of desperation. Still, although Burst! has a reputation for serving a high percentage of defaults, they also pride themselved on the fact that they respect their publishers as much as their advertisers (which certainly can't be said for many of the CPM agencies).

IMHO, this is one factor that will keep them alive when some of the smaller players start to drop off during the coming months.

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Czar
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Old 01-15-2001, 07:42 PM   #5
AK
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Quote:
Originally posted by Czar:
Hopefully this note marks the low point in the CPM drop-off, and that things will advance from here on.
Well, Burst's CEO recently said:
Quote:
/.../ Unfortunately, I can't offer you much comfort at the moment. Advertising is often soft at the start of a new year, and that may be especially true this year given that we're coming off a slow fourth quarter. We expect the softness to continue through the first half of the year, perhaps longer /.../
So it looks like CPM rates will be low and the number of defaults will be high for quite some time. The good thing is that Burst acknowledges this, and don't seem to panic like many other ad agencies.
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