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	Rex Ballard - Director of Electronic Distribution
	Standard & Poor's/McGraw-Hill
	Opinions expressed do not necessarily reflect
	the Management of the McGraw-Hill Companies.
	http://cnj.digex.net/~rballard


On Mon, 8 Jul 1996, Adam Gaffin wrote:

> > The most important context is to remember that the advertizer actually
> > only cares how many sales he can close as a result of his advertizing.  If
> > the advertizer puts an ad into a print newspaper that has a circulation of
> > 1 million and he gets 10 closes/week from those ads, and he puts up a web
> > page linked to "Great Places in New York" that produces 15 closes/week,
> > which is the greater value?
> 
> Ultimately, yes, but in the short term, we're finding that 
> advertisers care a great deal about image-based advertising, to the 
> point where many only want to hear about "impressions" (i.e., the 
> number of times their ad is seen, and the cost thereof), rather than, 
> say, delivered qualified leads. 
> 
> I don't know if this is because advertisers, like the rest of us 
> (well, OK, me), may not fully understand the implications of this 
> new medium or if there is something else going on, but even at a 
> niche publication, you're going to have to work pretty hard to sell 
> advertisers on a cost-per-lead basis, at least at rates that will 
> actually return enough revenue to keep you afloat.

There's an on-line apartment finding service
(http://www.apartment-store.com) . They charge $160 to find
and apartment in New York City.  The list is updated daily, the prices are
some of the best in town, and you don't have to pay 15% of the first
year's rent to an agent.

If I put a link to them in my publication that results in 20 new
subscriptions, do you think they are going to TELL ME that my ad was worth
$3,200 in sales?  Not unless they are idiots :-).  As long as I'm sitting
there feeling bad because I'm only getting 200 hits/week on my "great ways
to find an apartment in Manhattan" page, they aren't going to tell me that
30% of those 200 hits is going to 1 of 4 realtors who will eventually
close a deal or get the subscription.

On the flip side.  You can bet that if I were managing that Web Site, I'd
be wanting to know where these nice vistors were coming from.  Especially
the ones who drop $160-$200 on the first, second, or third visit.

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> 
	Rex Ballard



From rballard@cnj.digex.net Tue Jul 16 03:21:34 1996
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