Paying for Action
Alastair Thompson talks to Jon Ostler of “The Performance Network”
The online advertising industry continues to mature with the launch of NZ’s first “performance-based” advertising network. The Performance Network (TPN), soft-launched in March this year by First Rate founder Jon Ostler, was, he says, “in response to demands by advertisers and publishers for new advertising options”.
First Rate launch “The Performance Network” for Publishers & Advertisers
During 2005 we encountered a lot of demand from advertisers, publishers and agencies for new ways to place, run and pay for online advertising campaigns. There was a lot of interest in “cost per click” (CPC), “cost per lead” (CPA) and “cost per sale” (CPS) models.
This demand has been stimulated by overseas trends that now sees these forms of ad payment set to out strip the more traditional CPM rate card. Of course much of the CPC market is being driven by Google, Yahoo and MSN Search.
The Performance Network
During 2005 we encountered a lot of demand from advertisers, publishers and agencies for new ways to place, run and pay for online advertising campaigns. There was a lot of interest in “cost per click” (CPC), “cost per lead” (CPA) and “cost per sale” (CPS) models.
This demand has been stimulated by overseas trends that now sees these forms of ad payment set to out strip the more traditional CPM rate card. Of course much of the CPC market is being driven by Google, Yahoo and MSN Search.
Collateral Damage: “Banners, a weapon that misses its target 99.75% of the time”
Written by Jon Ostler – founder of First Rate
Would you use a weapon that fails to hits its target 99.75% of the time? If you are using banner ads to generate traffic then this is exactly what you are doing. The average click trough rate for banners tracked by DoubleClick is now <0.25% so you will get only 2.5 clicks for every 1,000 banners displayed (CPM).
This article is not an attack on the use of banner ads, but rather a review of the good, the bad, and the ugly methods being used by online advertisers in an attempt to generate traffic from banners (or blood from a stone).