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09-23-2004, 06:00 AM
#31
Originally Posted by cthree,Sep 21 2004, 10:51 PM
Your advertising costs are hopefully a function of your revenue. If I were you I'd be telling me to double my costs and quadruple my sales rather than worrying about how much something costs in dollar terms. A million dollars is a lot of money to most people but not everyone.
If you run a business like an accountant then these things are important. If you run it like an entrepreneur then you might be far more concerned about the result the ads generate rather than how much the ads cost.
The new system has a feature called "conversion code" which allows you to track actual orders generated by your ads. I haven't fully figured out how/if it works but it's there. You might want to give it a shot. if it does work it will allow you to relate advertising $ spent vs. sales received.
You not only have an ad at the top of each page now vs. the bottom but that ad is almost 2x as big. You can run multiple ads, one for each product if you like which you couldn't do before. you don't pay for the ad, you pay for the traffic is generates, no traffic, no charge. Hopefully you can convert a good deal of that traffic into sales but that's in your hands. If the new ad generates twice as much business as the old one at twice the price would that not be a net benefit?
Ted Turner's advice for success: "Early to bed. Early to rise. Work like hell and advertise."
If you run a business like an accountant then these things are important. If you run it like an entrepreneur then you might be far more concerned about the result the ads generate rather than how much the ads cost.
The new system has a feature called "conversion code" which allows you to track actual orders generated by your ads. I haven't fully figured out how/if it works but it's there. You might want to give it a shot. if it does work it will allow you to relate advertising $ spent vs. sales received.
You not only have an ad at the top of each page now vs. the bottom but that ad is almost 2x as big. You can run multiple ads, one for each product if you like which you couldn't do before. you don't pay for the ad, you pay for the traffic is generates, no traffic, no charge. Hopefully you can convert a good deal of that traffic into sales but that's in your hands. If the new ad generates twice as much business as the old one at twice the price would that not be a net benefit?
Ted Turner's advice for success: "Early to bed. Early to rise. Work like hell and advertise."
Based on the current burn rate, and the current rate of sales. The RIO has fallen, while the cost has gone up five fold. The basic idea that a click is worth .xx is where this system is out of line.
This .xx value might need to be addressed.
09-23-2004, 10:04 AM
#32
Administrator
I'm prepared to adjust the rate to acheive reasonable parity with the previous flat rate system. There is no real scientific way to do it. I took the average price and divided it by the average CTR on the ads before to arrive at the 0.xx price. There was no way to predict how things would go because of the change not only in size but also the position and number of ads run.
I am commited to making it reasonable and equitable. What I won't do is have different rates for different advertisers as was the case in the past. The rates will be equitable and fair. It's going to take some time and some fudging to find that magic number and I'll make adjustments to your accounts as necessary.
Cheers,
Erik
You have PM
I am commited to making it reasonable and equitable. What I won't do is have different rates for different advertisers as was the case in the past. The rates will be equitable and fair. It's going to take some time and some fudging to find that magic number and I'll make adjustments to your accounts as necessary.
Cheers,
Erik
You have PM
09-23-2004, 01:02 PM
#33
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Yes. There's a fair bit of adjustment needed. At the current burn rate we also have calculated a fivefold increase in our advertising costs with no difference in revenue (as yet).
The price will need to be adjusted for us to continue advertising and while we appreciate the initial credit the rates with which it has been used up is a strong indication (for us) that the current advertising costs are unaffordable.
The price will need to be adjusted for us to continue advertising and while we appreciate the initial credit the rates with which it has been used up is a strong indication (for us) that the current advertising costs are unaffordable.
09-23-2004, 01:25 PM
#34
Administrator
muz, I would expect your rate to go up as the price point you paid for the lower ad placement is no longer available. But someone who previously paid platinum (ie: rick) rates shouldn't see a large change in monthly rate. C3 will adjust as we get more data. We only have 2 days of data so far.
09-23-2004, 02:03 PM
#36
Administrator
C3 offered more credit to the exisiting advertisers till the final cost gets figured out. So I assume he'll give you an additional credit.
BTW you should make uglier ads
, for whatever reason yours is getting the most clicks (Click thru of ~.5%! everyone else is seeing .1-.3) 
You do have the nicest looking banner of the bunch.
BTW you should make uglier ads
, for whatever reason yours is getting the most clicks (Click thru of ~.5%! everyone else is seeing .1-.3) You do have the nicest looking banner of the bunch.
09-23-2004, 02:16 PM
#37
Administrator
I have added additional credits to your account and we will see how things go. It's only been 2 days and a bit. I would appreciate however if you would also contribute to your account, at least what you were paying before. If there is a difference then I'll float things by subsidizing your account until we get the final rate nailed down. I do however expect you will pay into your account. I'll pick up the difference but not the entire amount. There needs to be some give and take here.
Thanks.
Thanks.
09-23-2004, 02:42 PM
#38
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Originally Posted by cthree,Sep 24 2004, 08:16 AM
I have added additional credits to your account and we will see how things go. It's only been 2 days and a bit. I would appreciate however if you would also contribute to your account, at least what you were paying before. If there is a difference then I'll float things by subsidizing your account until we get the final rate nailed down. I do however expect you will pay into your account. I'll pick up the difference but not the entire amount. There needs to be some give and take here.
Thanks.
Thanks.
09-23-2004, 02:53 PM
#39
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Originally Posted by krazik,Sep 24 2004, 08:03 AM
C3 offered more credit to the exisiting advertisers till the final cost gets figured out. So I assume he'll give you an additional credit.
BTW you should make uglier ads, for whatever reason yours is getting the most clicks (Click thru of ~.5%! everyone else is seeing .1-.3) You do have the nicest looking banner of the bunch.
BTW you should make uglier ads
, for whatever reason yours is getting the most clicks (Click thru of ~.5%! everyone else is seeing .1-.3) You do have the nicest looking banner of the bunch.
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