Archive for the ‘cpa advertising’ Category

CPM advertising vs. CPC advertising - Do your company a favor and STOP cpm ad buys.

Monday, May 5th, 2008

Missing Attachment

If your company is still advertising on major display advertising networks such as Specific Media, 24/7 Real Media, CPX Interactive, Double Click, adGardner, etc….? STOP and re-negotiate your rates or STOP advertising on these networks all together. It is costing you an arm and a leg for shitty results. Yes, that’s right, shitty results. You may be featured on some of the most prominent websites, but you are also paying an arm and a leg and your banners are “blind” to the audience you are trying to reach. Only two out of ten impressions actually “see” your banner and out of that 20% only 1/10 will click on your ad, resulting in a CTR of around .02%. That’s pathetic, we regularly get 1%+ CTR with the banners and placement we create. But wait, there is a better way: Google, Yahoo, Microsoft, and Adsonar (AOL). Dump your CPM buys and buy CPC - you will actually get traffic.BannerBlindness.com regularly delivers hundreds of thousands of unique visitors to major portals looking to grow their subscriber base. Why would you want to pay for an impression when you can actually pay for a visitor. We can help - yes this is a shameless plug post promoting our services. We recently helped BuddyTV.com generate tens of thousands of new users. They are in a battle with TV.com for online market share of “online television social-networking”. This is the bread and butter way for major television networks to attract viewers for prime time television shows.

CPC advertising on a display network is cheaper and far more effective than purchasing hundreds of thousands of dollars of CPM buys throughout the year. Again: why would you pay for an impression when you can pay for an actual visitor. So you might be saying, and this is a common statement; “Well it’s worth it to pay for CPM advertising when your banners are very targeted” or “We have such a large marketing budget that we can’t achieve our goals through a cpc buy”. WRONG. I don’t have the time to conduct an actual statistical investigation into how much more effective cpc advertising is vs. cpm advertising - but I can assure you, that the observations and actual experience that my 10 years of online advertising experience disprove any notion that CPM advertising is EVER more effective then cpc advertising. Companies like Blue Lithium, Right Media, Advertising.com, etc… were founded on a performance based model; but quickly warped into CPM advertising as they saw an incredible opportunity to rip off major corporations through HUGE CPM buys. What the hell does a 60 year old marketing manager know about CPM buys? NOTHING.

The major online display advertising networks have been milking major corporations with major advertising budgets for years. I was discussing with an associate of mine recently, that even though major corporations like Budweiser, Ford, GM, Toyota, etc… may be losing out big on CPM advertising; it’s still probably yielding better results then traditional media buys (magazines, television, radio). So they may be getting ripped off, but at least it’s not as bad as it could be. But it’s time to get smart, and it’s time to get lean — corporations! Stop throwing your share holder money down the CPM toilet, and start paying for actual visitors not just impressions!

Contact Banner Blindness if you are interested in making a major dent in your daily and monthly uniques. We have helped clients double their daily traffic numbers, and achieve metrics such as: registrations, newsletter sign-ups, purchases, recurring visitors, landing page optimization, etc… We can very affordably and quickly send you hundreds of thousands of unique visitors through large CPC buys using all the major advertising networks. Additionally, if you are a publisher (as many of our clients are) you will be arbitraging your purchase with us, as you will make it up on the number of impressions you can serve based on the number of unique visitors we deliver. Remeber, only pay for for unique visitors - NEVER just impressions.

Support this blog. Bookmark this article: These icons link to social bookmarking sites where readers can share and discover new web pages.

An analysis of direct response marketing - Kinoki foot pads - Livemercial

Sunday, January 6th, 2008

Missing Attachment

I came across this late night infomercial: Kinoki Detox Foot Pad, (direct response television advertisement) the day after New Years. The Kinoki Detox Foot Pad is another brilliant marketing product that I’m sure will be a top selling DR product in 2008. Livemercial is the company behind this brilliantly executed DR product. January and February are the biggest Direct Response marketing months of the years – New years and Valentines day, people want to make changes. The following is an analysis of the Kinoki Detox Foot Pad and how Livemercial is making millions of dollars from this incredibly worthless (but highly believable) product.

Kinoki Foot Pads

Firstly, lets discuss the late night infomercial I saw on NewYears at 2 am in the morning (I would have been out later, but LA shuts down rather early). The infomercial contained all of the components of a high end direct response marketing piece:

  • Attention getter (A big “WOW” opener) that immediately shocks and focuses the watchers attention on the commercial.
  • Explained the benefits of the products: drains your body of toxins, poisons, bring back health, removes pain, fatigue, and LOSE WEIGHT- basically a CURE ALL product.
  • Testimonials from beautiful people explaining the incredible benefits of the product and how it has cured them from ills and emotional distress. The testimonials were very personable and amateur looking – as generic high end testimonials are very unbelievable.
  • The call to action at the end of the commercial encouraging viewers to immediately purchase the product either by calling in or ordering through the website.

The website contained all of the components of a high end direct response marketing website:

  • Portions of the television advertisement are featured on the landing page
  • Highly believable testimonials that are featured on the home page and on its own separate page
  • FAQ’s and clinical information that supports the claims of the product
  • Call to action that is above the fold on the home page – far too many DR landing pages on the net have call to action links that are below the fold.

I called the 1800 number and was greeted with, “Hello, this is Susan.” I said, “Hello Susan, I would like to order the health product.” Susan responded, “which product is it that you want to purchase?” I said, “The one that makes you healthy, I can’t remember the name of it, I am drunk and it is New Years.” Susan said, “You must tell me the name of the product otherwise I am unable to sell you anything.” I responded, “Ok, tell you what, I just want to buy everything you have, what can you sell me.” Susan was unable to tell me what products that they sell – this clearly seemed like some type of scam operation. I’m unable to determine why she was unable or unwilling to tell me what products she sells in the call center she works at - probably because it is a call center that handles hundreds of products. I hung up on her and went to the Kinoki website.

Kinoki Foot Pads

I placed the order on the website so I could take photos of the product and expose it for the incredible scam (which I believe and will report truthfully on) that it is. This is where the Kinoki Detox Footpads really shines in the marketing world – they offer two types of products to purchase:

  1. The Kinoki Detox Footpads for a one time charge of $19.99
  2. The Konoki Detox Footpads for a monthly recurring charge of $19.99

Kinoki Foot Pads

The average user probably enrolls for the Kinoki monthly foot club and doesn’t even know they are enrolled in a recurring billing trap. The website makes it very confusing (*Free for life continuity program) when you determine which product to purchase, the monthly foot club purchase option is pre-populated and therefore, somewhat deceptive but truly brilliant. I would estimate that it takes 3-6 billing cycles before a subscriber actually cancels his or her membership (so a blended CPA average of $80), and I’m sure some people will stay a subscriber for life, as the placebo effect (which I believe and will report on) has a positive impact on the users mental psyche. The profit margin on these detox footpads are probably some of the highest in the direct response marketing industry. I would imagine that they cost less than a dollar to manufacturer and package. The shipping fees for these pads are egregious and clearly not the real value of the shipping, the additional amount is called, “Handling”.

Before your purchase is completed you are presented with additional products to purchase that can make you look 10 to 20 years younger. Livemercial truly knows how to monetize its users, through recurring billing and up-selling. The elements outlined in this article, and clearly demonstrated by the Kinoki foot detox pad, are the fundamental building blocks of a successful direct response marketing campaign. The product is incredibly profitable, the television commercial is professional (contains high end graphics, testimonials, etc…), and the website offers continuity as well as high end graphics and the same elements as the television commercial.

Kinoki Foot Pads

The consultants at BannerBlindness.com study, design, and execute highly successful campaigns just like the Kinoki Detox Footpads. Banner Blindness online marketing professionals specialize in developing:

  • Product development and outsourcing
  • Direct response television marketing pieces
  • Call center and online ordering support
  • Direct response ordering websites
  • Online marketing (paid search, display advertising, affiliate marketing)
  • Multivariant and A/B split testing for all components of the DR campaign
  • Customer support and product reconciliation

To speak with a Banner Blindness online marketing professional call: 312-281-8931 or email Support@BannerBlindness.com

Happy New Year!

Support this blog. Bookmark this article: These icons link to social bookmarking sites where readers can share and discover new web pages.

  • Digg
  • del.icio.us
  • Bumpzee
  • Fark
  • Furl
  • Netscape
  • NewsVine
  • Reddit
  • Spurl
  • StumbleUpon