View Full Version : Question about "no-default" networks

Ralph Slate
10-01-2000, 07:29 PM
There are a couple of networks out there that offer no defaults. I'm questioning whether that is a viable thing to do, and whether it is beneficial to the publisher.

There are two kinds of ads -- CPM and CPC. And there is no such thing as an "unlimited" campaign to an advertiser -- if you're an advertiser you contract for X clicks or X impressions.

The only way to have no-default CPM ads is to have more ads than impressions. We all know that just doesn't happen.

For CPC ads, the only way to have no defaults is to show ads which don't get clicks.

Think about it -- we all know that advertisers design banners that just don't get clicked much. To counter this, an ad network should run the banners on the sites that get the highest CTR -- thereby using up the clicks in the shortest amount of time possible.

If a site is consistently getting 10% CTR on a banner then that site should get as much of that banner as it can handle. And a site that is getting 0.01% CTR shouldn't get much of that banner at all. Use the clicks up fast so that as few people as possible "see" the banners -- thereby giving the advertiser what they supposedly want, clicks.

If the advertiser really wants to stretch the campaign out and is mad because the clicks were all used up on so few impressions, then tough cookies -- they can buy CPC for that.

Back to the original premise -- if a network is trying to give "no defaults", then the way to accomplish that is to optimize the CPC banners so that the clicks don't get used up. Show the CPC banners on the sites that have the worst CTR. That way you'll always have a paying banner, it just won't be paying you anything!

Otherwise, how can you have no default banners?



10-02-2000, 04:38 AM
Interesting thought - here are some alternatives.

I know advertising.com used to give house banners but pay you for them anyway. i.e. they ran defaults when ads ran out and then paid you for those defaults regardless. So that is one way of doing it.

Another way is for advertsing agency to use some another agencies banners when they run out. Sure it is possible that all of them will run out, but unlikely. Of course, the site will receive less on these ads as both the primary and "default" agency in question will take their cut - but it is not a "default" that you will see. I beleive Adtegrity did this for a while with advertsing.com for example.