> >Unless e-gold started data mining the spending habits of their users and
> >correlating it to the type of business that the spend was made to, the
> >only relevance that the advertising would have is that they accept e-gold.
>
> No .. no logic here?
e-gold would be to offer *only* untargeted advertising without doing the
data mining. If they didn't then the only thing that would be known would
be that the user has a computer. An advertiser couldn't even be sure that
their ad was being viewed by people in the same country.
The main question again is - Why should e-gold bother?
They don't need the money, which is usually the primary reason for hosting
advertising.
They can't offer anything other than untargeted ads without violating
their user & privacy agreements.
They could end up alienating users who don't want to see ads when using a
service that they are paying for.
> Yahoo and Double click offer both untargetted, and targetted ads.
> Both work perfectly well in their own way. Indeed in the early days,
> both those services offered only untargetted ads.
Yeah, and untargeted ads have horrible click-through rates. This is why
untargeted cost so much less than targeted.
Also, in the early days the marketing profiles hadn't been fully compiled
yet, and the concept of loading lots of tracking cookies onto the user's
computer was just coming into being.
> What your'e saying here doesn't make sense -- consider, say
> Amazon.com (or hell, Banana) wanted ads on egold. Would they choose
> "everyone" or "targetted" - they'd choose "everyone", anyway.
Then why is there such a huge market for targeted advertising? A company
wants their ads placed where it will draw the largest response. Which will
draw the largest response... 10,000 Amazon.com ads shown to "everyone" or
10,000 Amazon.com ads shown to people that are known to be frequent book
buyers?
> >the probability that a banner will interest the spender would be down
> >around the usual 0.7% that untargeted advertising usually gets.
>
> Sweet jesus mother of christ ... .7 per cent?
The average click-through rate is usually sold to be 1%, but is usually
down around 0.3-0.7%. This is just the click-through rate, not the rate at
which the user does anything profitable.
> I assume you've never had anything to do with advertising?
Professionally, no. I'm a programmer, not a salesman/ad exec. But I have
done quite a bit of extensive research into web-based advertising.
> Do the figures .. if Banana (say) ran ads and got .7 per cent
> response, that would be MINDBOGGLIINGLY FANTASTIC.
You ran 100,000 ads for bananagold on the e-gold spend page. If your
banner was in a moderately heavy rotation (1/4 of all ads), it would take
16-50 days to run completely through. With a 0.7% clickthrough, you would
receive 700 clickthroughs. That is an average of 14-44 clickthroughs/day.
I didn't say 14-44 purchasing customers. I said clickthroughs, people who
simply view the frontpage of your site.
> >The dowry for marrying e-gold to MegaCorp would be the privacy of it's
> >users.
> >After the question of 'How do we contact e-gold users?' comes the question
> >of 'What are their spending habits & demographics?'.
>
> I don't see that at all - why is there a connection?
Why is there such a big market for targeted advertising if untargeted is
so profitable? How do you create targeted advertising without knowing
spending habits & demographics?
> Of all the web sites that take benner ads, the vast majority do NOT
> do any sort of demographic sifting, they just sell broad untargetted
> ads.
And the vast majority have horrible click-through rates. The untargeted
ads are usually sold to companies who only want to test the water, or
can't afford targetted ads. A lot of sites don't do their own advertising.
They outsource to somebody like DoubleClick who then offers them more
money if they give a marketing profile of their site & their user
demographics.
> You could say the same of broadcast TV. I see no "a leads to b"
> connection there.
Actually there is quite a lot of targeted ads on broadcast TV. The
advertisers place their ad during the timeslots when the people most
likely to be watching will be the people most likely to be receptive to
their advertising.
Examples:
Soap Operas - called that because the advertisers realized that
stay-at-home wives were watching those shows and so started placing ads
for all sorts of soaps & cleaning supplies; thus targeted ads on broadcast
tv.
How often do you think ads for feminine hygiene products show up during
WWF (Worldwide Wrestling Federation) shows?
It is sometimes interesting to study the ads during a show and figure out
what the advertisers think is the main demographic watching that show.
> >Yes, they should. e-gold should just be an accounting system. Wouldn't
> >advertising create the same sort of legal liabilities that listing the
> >businesses in a directory, with the usual disclaimer, would create?
>
> Not at all - all advertising outlets can either sell or not sell ads
> to whoever they want (giving absolutely no reason - they mnight be a
> competitor, or they might just not like the ad) - it would be the
> same for egold.
How is that any different than listing, or not listing, the site on the
directory page? e-gold can choose, at a whim, whether or not to place
somebody in the directory.
Viking Coder
________________
Worth Two Cents?
http://www.two-cents-worth.com/?VikingCoder
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