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Subject: UKNM: Banner advertising a stupid waste of money?
From: Ray Taylor
Date: Thu, 11 Mar 1999 15:12:57 GMT

Ian Tester <itesteratfletch [dot] co [dot] uk> said:

>Try telling chappies like Amazon that advertising online to build traffic is
>a stupid waste of money - I believe they regard it, quite correctly, more as
>a form of customer acquisition, which is what half the game is about.....

What I said was, word for word, "..most web advertising is still about
building traffic ALONE. Which is a stupid waste of money, considering the
high cost of UK inventory." (emphasis added)

For those who missed the word "alone" in the above, I will rephrase my
comment as follows:

"If the ONLY thing you are getting from your banner advertising spend is
traffic to your web site, then you are wasting your ad spend." (This assumes
you are buying over-priced UK inventory). And personally, I consider wasting
money to be stupid. Consider that the prejudice of a man of limited means if
you wish, but I also consider it profoundly unprofessional to waste my
client's money too, as I am sure the media sales people I talk to will tell

As you quite rightly point out, Ian, the "chappies at Amazon" use banner
advertising to acquire new customers. Therefore one of the values they get
from their banner advertising in addition to traffic building is customer
acquisition. Therefore they get more than just traffic. Therefore you are,
like Caroline, agreeing with my point that there is a lot more to banner
advertising than just building traffic.

If Amazon campaigns generated traffic AND NOTHING ELSE their campaigns would
be a stupid waste of an awful lot of money. And although I am no expert on
Amazon and its marketing techniques I would imagine they get the following
values from their banners and buttons:

. Brand awareness
. Traffic
. New customer acquisition and product sales

And others besides.

So thanks for the advice, Ian, but I will not be telling Amazon or anyone
else that banner advertising is a stupid waste of money. I don't need to
tell Amazon that traffic building is not an end in itself because I think
they wrote they book about online brand building and customer acquisition.
It's a shame more people don't read it.

The only advice I could possibly give to Amazon (or any other online
advertiser) is - that if you allowed me to run your online campaigns, they
. Generate MORE brand awareness, and/or
. Drive MORE traffic to the site, and/or
. Drive MORE repeat traffic, and/or
. Produce MORE customer data, and/or
. Win MORE new customers, and/or
. Close MORE sales

I take professional pride in ensuring my clients get as much value for their
ad spend as possible, along the above lines, but I am sure that whoever runs
Amazon's campaigns has an equally professional grip on all of the above too.

Is Amazon stupid? I don't think so, Ian, though many people apparently do.

Ray Taylor +44 181 639 0015
NMC/Adplan - We create online ad campaigns that guarantee results
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  Re: UKNM: Banner advertising a stupid wa, Pete Robins
  UKNM: Last Minute or How not to run an e, Mario Tilney-Bassett

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