Online advertising - how risky is this?

Discussion in 'General Marketing' started by bauer1984, Dec 29, 2008.

  1. #1
    Hi guys,

    I thought i'd put this in here since it is in regard to my brother's advertising business.

    His company buy ads (CPM rate) across their network of sites. But they only get money on a CPA basis. So if the CPA is too low to cover the CPM being paid then they will make a loss - every time!

    is this really how agencies try to make money? what if they paid for millions of "targeted" impressions yet none of them convert?
     
    bauer1984, Dec 29, 2008 IP
  2. copper12

    copper12 Peon

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    #2
    There are othe ways agencies make money other that that. If I understood your post correctly, that is.

    If none of the visitors convert after clicking on the ads, it means the site isn't doing its job, and or the price is wrong, among other factors.
     
    copper12, Dec 29, 2008 IP
  3. EchoPromotions

    EchoPromotions Peon

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    #3
    I wouldnt put all ur eggs in this basket if i were you.

    Like u said, they only get paid on a cpa ...

    so unless its a product like .... idk. AIR that everyone uses and some how would need to buy!

    Affiliate programs (getting companies to pay u to advertise on their sites) are free and once again not the best way to make money but the more the better.

    However

    find a network

    creating a network of sites

    that will let you work with them to be their ad generator,

    cut them into a percent for doing it and then make the profit off of selling the spots.

    Theres other options too that are not internet based that are way more Worth peoples time

    (bluetooth, Payphones, splash screens) but thats a whole nother story!
     
    EchoPromotions, Dec 29, 2008 IP