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Wednesday May 30, 2007
The Dog in the Bathtub
Sure, you can pick up some quick short-term revenue by getting the dancing monkeys mortgage ads on the site for a month, or delivering a few hundred thousand pop-unders for Career Builder. But your readers will hate you and--when the campaign is pulling sub .01% clicks--so will your new advertisers. But what about those companies that are somewhere in the middle? The ones that MAY do well on the site, but you never know? I like to encourage customers to run test campaigns before they commit to a major ad spend. It may sound counterproductive to not look for the maximum dollar amount for every new customer when you can get it, but I believe in creating long term customers, not one-shot deals. I consistently encourage new advertisers to try test campaigns valued at under $1000, and make sure they receive a variety of different ad types across the site. This gives us two things: an almost 100% conversion rate among new clients (they will "risk" a small amount to try our site), and valuable market data I can use to optimize subsequent campaigns after the test run. After delivering a campaign with a new advertiser, I like to compile the campaign stats from our ad server, and see what the client-side feedback is. In most cases, the client has the best responses from the portion of the test campaign with the higher CPM, and will initiate a subsequent campaign priced at a higher value than originally budgeted (if the results are good). If the results are not effective, you just saved an advertiser a lot of money--and ensured that their word-of-mouth feedback was "those guys are very fair" rather than, "Mediabistro.com--what a rip off!" It's a great way to make friends, and a lot easier than putting the dog in the tub. |
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