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  1. #1
    What's the word? Rhia7's Avatar
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    January 13th, 2006
    [article] A Pricing Revolution Looms in Online Advertising
    Changing models in online advertising and fluctuating budgets affect publishers in more ways than one.
    Demographic profiling and behavioral targeting by such companies as Google, Quantcast, and ValueClick is slashing ad costs and threatening Web publishers
    The key for publishers is in the use of data about a site's visitors:
    So hope remains for online publishers: Find unsold segments of your readers and sell them to advertisers that previously couldn't access them. Use data on past reader "click streams" from other Web sites to help advertisers reach the consumers who are most interested in their products.

    Publishers, your audience data is waiting. Advertisers want it. But you'd better hurry, because the price of your old online business model is falling fast.
    ~Rhia7 -- Remember the 7
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  2. #2
    ABW Ambassador Joshua's Avatar
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    August 17th, 2006
    From the article:
    Congratulations! You just used behavioral targeting to reduce your ad costs from $60 to $3 CPM, a 95% savings. (And yes, those cost quotes are based on real client experience.)
    To start, anyone paying $60 CPM is an idiot these days. I don't care how affluent or targeted the ads are, you shouldn't be paying $60 CPM. Targeted ads will cost more CPM than untargeted ads, so if retargeting costs $3 CPM, your regular inventory should already be purchased for less than $3 CPM.

  3. #3
    Full Member OICUAM2's Avatar
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    May 18th, 2006
    Madison, WI
    The online ad market will continue to be immature as long as an ad in a newspaper is more expensive compared to an online ad.

    You can't click and find more information or make a purchase from a newspaper ad.

    If the online ad market matures and drives down prices for specific types of online advertising, this will be good overall because people will get better ROI and will be able to justify spending more money online.
    [URL=][/URL] - Build Wealth

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