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Re: AM: Value of user demographics?

To:     Andrew Forbes <andrew.forbes@redbridge.com>
Subject:     Re: AM: Value of user demographics?
From:     Paul Albert <paul@routelink.com>
Date:     Thu, 08 Jan 1998 19:50:31 -0500
CC:     Adv/Mktg <ad-market@netpreneur.org>
Organization:     RouteLink
References:     <01bd1c87$7554db20$3094efce@BOUNTY.ITPO.COM>

Naturally, a definitive answer to this question does not exist.  The value of
demographics is completely based on the situation (e.g., what is trying to be
sold, how sophisticated is the selling process, how targeted is the site?).

The more sophisticated the site, the better.  Try looking at sites working
with Firefly and other collaborative choice guides.  You might also want to
look at sites working with GIS that help consumers find the closest
store/dealership/etc. near them..

The more general the site, the better.  The fragmented and targeted nature of
the Internet results in a lot of demographic self selection before a banner
is even shown to a user.  The more focused any site is, the less variability
it will see in demographics and the less value your service would have.

I would think that a handful of general sites like Yahoo have the
sophistication and ability to charge more for demographic ad placement.
E.g., $1 CPM across board, $1.50 CPM for Mid-Atlantic households earning over
$500,000.  You might consider basing your fees on the spread realized between
the two rates and let the market determine the price.

 -- Paul Albert, paul@routelink.com
    President, RouteLink, Inc.
    Internet-Based Freight Matching - "We Help America Run"
    (v)703-242-4444 (f)703-242-3998, www.routelink.com



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