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I always enjoy reading Andrew's posts, but I didn't get much out of this one. Calling ad supported sites a B2B is just a unique way of looking at the situation-

by ABrandt 17y ago

I always enjoy reading Andrew's posts, but I didn't get much out of this one. Calling ad supported sites a B2B is just a unique way of looking at the situation--simply a different way to look at it, if you will. The fact remains that this "inventory" that is being sold to brand advertisers is worth very little in the marketplace (which he does eventually conclude in this article).

eli 17y ago
The problem is that there are so many sites reaching the same broad demographics of consumers that the ad space is totally commoditized. But if you run a site for well-off cat owners, there's no reason you can't command a higher CPM for expensive cat-related products, it just may take the efforts of a dedicated in-house ad sales staff. Anyway, the trend is to move away from CPM ad sales altogether anyway. Ad agencies and big marketing departments want CPL. They would much rather pay you $XX per qualified person who fills out a contact/download form, rather than CPM. That way the pressure is on you to deliver.
- mediaman 17y ago
  This is true, particularly for direct marketing agencies, but many traditional agencies are focused more on brand-building than CPA/CPL. Selling to direct marketers is much easier than traditional agencies for this reason. There's a million people banging on the traditional agencies' doors with some pitch or another, and so long as selection is not based on concrete performance data, the media buys are based more on perceived brand credibility and agency connections. I know from experience that this approach has a frustratingly long sales cycle (i.e. >12 months) and involves a lot of politics between brand managers, agency people, sub-agency people, outside consultants, product managers, ad nauseam, any single one of whom can tank a deal if they want. Direct marketers however are much more willing to try something out and see if it works.
  - eli 17y ago
    Very good point, though I think that even brand building is going to start to move towards real metrics (be they "clicks to learn more" or something else). But sure, there's always going to be a cachet with having a really strong brand that advertisers want to associate with.

by ABrandt 17y ago

eli 17y ago

The problem is that there are so many sites reaching the same broad demographics of consumers that the ad space is totally commoditized. But if you run a site for well-off cat owners, there's no reason you can't command a higher CPM for expensive cat-related products, it just may take the efforts of a dedicated in-house ad sales staff. Anyway, the trend is to move away from CPM ad sales altogether anyway. Ad agencies and big marketing departments want CPL. They would much rather pay you $XX per qualified person who fills out a contact/download form, rather than CPM. That way the pressure is on you to deliver.

mediaman 17y ago
This is true, particularly for direct marketing agencies, but many traditional agencies are focused more on brand-building than CPA/CPL. Selling to direct marketers is much easier than traditional agencies for this reason. There's a million people banging on the traditional agencies' doors with some pitch or another, and so long as selection is not based on concrete performance data, the media buys are based more on perceived brand credibility and agency connections. I know from experience that this approach has a frustratingly long sales cycle (i.e. >12 months) and involves a lot of politics between brand managers, agency people, sub-agency people, outside consultants, product managers, ad nauseam, any single one of whom can tank a deal if they want. Direct marketers however are much more willing to try something out and see if it works.
- eli 17y ago
  Very good point, though I think that even brand building is going to start to move towards real metrics (be they "clicks to learn more" or something else). But sure, there's always going to be a cachet with having a really strong brand that advertisers want to associate with.