Hello pinar,
In an articel of
http://www.directmarketing-online.com/features/dmonline-list.htm
Tim Lee from Webcmo (http://www.webcmo.com) wrote some
lines about pricing in the banner market. Maybe its of some
help for your research.
Regards
Matthias
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From: [EMAIL PROTECTED]
Subject: Real numbers: Demand and competition on the banner
market
The current online banner market is a twisted market: high prices,
huge unsold inventories and low penetration. There are many
statistic numbers about this market. However, these numbers are
unable to disclose the structure and movement of this market.
Today, we try to depict the demand and competition of this market
based on web marketers' banner choice behaviors from
WebCMO's online banner choice survey: Understand advertisers'
preferences.
1. Basic demand curve
We have studied 5 banner price schemes: $5, $15, $25, $35, $45.
(CPM) What
are the market penetration under these prices?
price penetration
$5 50%
$15 44%
$25 48%
$35 40%
$45 32%
2. If web sites can increase banner promotion effectiveness by
content targeting, what are the market penetrations?
price penetration
$5 67%
$15 61%
$25 65%
$35 57%
$45 49%
3. If large and medium traffic web sites HOLD their high price at
$45 CPM, but small web sites charge different prices, what is the
market share for small web sites under such competition?
price market share (for small web sites)
$5 41%
$15 35%
$25 38%
$35 31%
$45 24%
4. If large and medium traffic web sites HOLD their high price at
$45 CPM, but small web sites charge different prices and increase
their banner promotion effectiveness by content atrgeting,, what is
the market share for small web sites under such competition?
price market share (for small web sites)
$5 58%
$15 52%
$25 55%
$35 48%
$45 39%
The above market demand and market share simulations are based
on the Discrete Choice Analysis of our survey data (220 valid
respondents with a total of 2104 valid choices.) Market penetration
indicates the percentage of the web marketers who are willing to
purchase banner services at that price. Market share indicates the
percentage of web advertisers (among all advertisers who are
willing topurchase banner services) who are willing to put their
banners on small web sites.
We have noticed that the demand curves are not as what we have
expected: the decrease of price from $25 to $15 does not increase
the market penetration. Instead, the market penetration decreases.
One explaination is that currently lower price signals lower banner
promotion effectiveness. We conducted the follow up survey on this
issue. From the data we have received, we are unable to make
this conclusion. We are conducting new survey to solve this puzzle.
If you are not familiar with Discrete Choice Analysis and Conjoint
Analysis, please read "Understand advertisers' preferences" at our
web site.
The simulations we present here are only a few market simulations
from thousands possible simulations. If you want to see other
simulations, please participate in the survey to receive your free
report. Or you can purchase the report (plus 5 customized
simulations) later at US$995.00.
Tim Lee
Director of Research
http://www.WebCMO.com
A site dedicated to web marketing research.
WebCMO Digest--free e-zine about web marketing research &
strategy
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