AM: Ad/Store rates- Lauren Freedman responds
Lauren Freedman is president of the E-tailing Group, a
Chicago-based consulting firm specializing in electronic
retailing. Lauren helps traditional retailers tackle the Web.
Projects and clients include Microsoft Network, Toys "R"
Us, Bloomingdales, US West, AT&T PersonaLink, Avon
Lauren has also worked with Virtual Retailers that include
Internet Shopping Network, CyberShop, ShopperVision
and i Village. Lauren has also worked on Interactive
television projects and published several industry reports.
Lauren is well known & respected in this space and sends
in the following comments for Amy.
From: Lauren Freedman
Date: Sunday, June 07, 1998 10:16 AM
1. store/vendor rates-
I think given no substantive offer that the revenue share is
most enticing to vendors and that 12% is a good margin
share in this category. You have all the assets and brand
most importantly. You may want to ask for "x" number of
promotions as well. You can try for leasing fee but
no longer standard.
2. ad rates-
2. $50 a cpm is high on an unproven, no-name product.
Even search engine locations can sometimes be negotiat-
ed for less than that. Try packaging ads for a lease fee
above for a 1 shot price.
Good luck and please let Amy know she can call us at
the e-tailing group, inc.