You Get What You Pay For

by , Aug 21, 2001, 12:00 AM
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You Get What You Pay For

An e-mailed release from the Jupiter Online Advertising Forum in New York said that a new study by Jupiter Media Metrix showed that nearly two-thirds of online media buyers are willing to pay more for premium inventory. The analysts believe, though, that the 36% of media buyers who are not willing to pay more for premium inventory feel they have more power to dictate cost than publishers do in the current economic climate. Patrick Keane, vice president and senior analyst said, however, that "New creative formats, performance pricing and greater accountability will not turn the market around any time soon."

Advertisers bring a performance mentality to premium inventory, said the analysts. 47% of advertising buyers have expectations of higher ROI when using premium positions, and 27% seek exposure to a more targeted audience. The ability to capture e-mail addresses and the ability to provide contextual or advertorial content were both identified as priorities by 9% of ad buying executives, respectively.

Jupiter expects that premium inventory will sell standard and performance-based placements by:

- Creating self-serve solutions by allowing prospective advertisers to bid on space.

- Providing effectiveness case studies that distinguish between direct response and branding objectives.

- Placing premiums on media, not creative. Premium inventory is largely a function of placement to be effective.

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