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Re: AM: Value of user demographics?

To:     ad-marketing@netpreneur.org
Subject:     Re: AM: Value of user demographics?
From:     Paul Albert <paul@routelink.com>
Date:     Fri, 09 Jan 1998 11:26:22 -0500
Organization:     RouteLink
References:     <199801091605.LAA22323@services.netpreneur.org>

mike@localeyes.com wrote:

> If someone, could truly and accurately (95% and higher) represent
> the zipcode and user demographics of a surfer, my analsyis of
> value would be the following based on our experience:
>
> 1.  Generic advertising (no demographics or interests) $5-20 CPM
> (depends on brand power)
> 2.  Topical Targeting (no geography or user demographics) $20-35 CPM
> (variation also depends on brand power)
> 3.  Geographic and Topical Targeting at the zipcode level $35-50 CPM
> 4.  Other Demographic targeting (gender, income, profession) $50-100 CPM
>
>
> >Andrew Forbes (andrew.forbes@redbridge.com)
> >Thu, 8 Jan 1998 09:17:34 -0500:
> >
> >I'm working on a business plan, and I'm in the process
> >of refining the revenue numbers. I'm having a difficult
> >time deciding on the value of one of the services, and
> >I'm hoping for some feedback from this group.
> >

Andrew,

Here is part of your answer for your plan, extrapolate from the figures Mike
("a CEO of a prominent Internet directory site supported by banner ads")
provided and estimate what the value to the entire market is now, and will be
in the future, from delivering targeted banner ads.  Then peg the value of your
services at maybe one-half of that to reach the overall "market size."   Then
figure out how much of the market your company will be able to penetrate and
how.

It is complete guesswork, but it is defensible guesswork.  I wouldn't suggest
showing your estimates to the nearest dollar however.

 -- 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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