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Click-thru vs. Impression Based Internet Advertising

Advertising based on the number of impressions displayed and not on actual clicks received -- flat rate or by productivity-- is the MAIN reason that so many lose money on the Internet. Mainstream advertising rates are based on magazine or broadcast price guidelines. They apply the same formula to the Net. The “formula” is flawed and doesn't work in this medium. The proof is in the results. Why pay for 100,000 impressions if NOBODY clicks to go to your site? Wouldn't you rather have 25 live targeted clicks? Doesn't that represent more value?

If you purchase 100,000 impressions for $5,000 it means NOTHING! It's the same as loading up a bus with 50 people, and driving by a casino without stopping, and repeating the process until 100,000 people have passed the casino. Then, you give the bus driver $5,000 for the ride. You still have nothing, and you've just WASTED $5000. You might as well collect the $5,000 from every business you pass on the trip. They would all get the same value. ZERO! The bus driver makes millions!

Compare that with a bus driver STOPPING at your casino and unloading those 50 passengers at the front of door and holding the door open so that people can enter. Those 50 visitors are already more valuable than the 100,000! If you had to pay $10 each, you would still have $4,500 left to bring in more. So, even if I charged $10 a click thru, that $500 is a BARGAIN compared to spending $5,000 for nothing!!

When a Web based business invests $5,000 and receives no benefit, it's not likely that they'll try it again. But if they spend $50 and get results, they will want more and they will invest more. It becomes a win/win situation as opposed to a win/lose situation. The most impactful day on the Internet will be when the buyers of impression based advertising wake up and realize that their Web based businesses really can be profitable, but their profits are being eaten up by this obscene way to advertise. This is not rocket science, it's just simple common sense.