Comments on: “Lower-Tier” Networks Revisited: An Untapped Opportunity http://blog.rightmedia.com/2007/03/26/%e2%80%9clower-tier%e2%80%9d-networks-revisited-an-untapped-opportunity/ Tue, 07 Oct 2008 00:05:18 +0000 http://wordpress.org/?v=2.0.4 by: Mike http://blog.rightmedia.com/2007/03/26/%e2%80%9clower-tier%e2%80%9d-networks-revisited-an-untapped-opportunity/#comment-161086 Wed, 11 Apr 2007 22:59:46 +0000 http://blog.rightmedia.com/2007/03/26/%e2%80%9clower-tier%e2%80%9d-networks-revisited-an-untapped-opportunity/#comment-161086 If network A (a limited inventory delivery network) sells 5,000,000 of your impressions at a $1 CPM and another 5,000,000 at an $.80 CPM…then they have delivered and eCPM of $.90 and paid you $9,000. Meanwhile, if network B (a 100% fill network) delivers the same 5,000,000 impressions at a $1 CPM and the same 5,000,000 impressions at an $.80 CPM…but also delivers another 10,000,000 impressions of your “lower-tier” inventory at a $.50 CPM…then they may have delivered an eCPM of only $.75, but they have paid you $16,500…$7,500 more than the so-called “top-tier” network! Bad math here: the addition of 10 million impressions @ 0.50 CPM would add another $5,000 making the total revenue earned $9,000 + $5,000 = $14,000, not $16,500. The overall eCPM here would be [$14,000/20,000,000] = $0.70 eCPM, not $0.75 eCPM. The additional $5,000 in revenue ($14,000 - $9,000) is really a function of the additional 10,000,000 impressions. These impressions are available no matter whether you use one network or 7. If network A (a limited inventory delivery network) sells 5,000,000 of your impressions at a $1 CPM and another 5,000,000 at an $.80 CPM…then they have delivered and eCPM of $.90 and paid you $9,000. Meanwhile, if network B (a 100% fill network) delivers the same 5,000,000 impressions at a $1 CPM and the same 5,000,000 impressions at an $.80 CPM…but also delivers another 10,000,000 impressions of your “lower-tier” inventory at a $.50 CPM…then they may have delivered an eCPM of only $.75, but they have paid you $16,500…$7,500 more than the so-called “top-tier” network!

Bad math here:
the addition of 10 million impressions @ 0.50 CPM would add another $5,000 making the total revenue earned $9,000 + $5,000 = $14,000, not $16,500. The overall eCPM here would be [$14,000/20,000,000] = $0.70 eCPM, not $0.75 eCPM.

The additional $5,000 in revenue ($14,000 - $9,000) is really a function of the additional 10,000,000 impressions. These impressions are available no matter whether you use one network or 7.

]]> by: » CPX’s CEO Blogs On The Right Media Blog http://blog.rightmedia.com/2007/03/26/%e2%80%9clower-tier%e2%80%9d-networks-revisited-an-untapped-opportunity/#comment-155294 Wed, 28 Mar 2007 02:01:44 +0000 http://blog.rightmedia.com/2007/03/26/%e2%80%9clower-tier%e2%80%9d-networks-revisited-an-untapped-opportunity/#comment-155294 [...] It’s great seeing our exchange partners blogging about why Right Media’s online exchange works. Mike Sieman, the CEO of CPX Interactive — one of our members of the Right Media Exchange (RMX) — contributed the following article: “Lower-Tier” Networks Revisited: An Untapped Opportunity [...] […] It’s great seeing our exchange partners blogging about why Right Media’s online exchange works. Mike Sieman, the CEO of CPX Interactive — one of our members of the Right Media Exchange (RMX) — contributed the following article: “Lower-Tier” Networks Revisited: An Untapped Opportunity […]

]]> by: Top-Tier vs. Lower-Tier Ad Networks » Conversion Rater - web analytics, online advertising, and website publishing. http://blog.rightmedia.com/2007/03/26/%e2%80%9clower-tier%e2%80%9d-networks-revisited-an-untapped-opportunity/#comment-155075 Tue, 27 Mar 2007 17:39:09 +0000 http://blog.rightmedia.com/2007/03/26/%e2%80%9clower-tier%e2%80%9d-networks-revisited-an-untapped-opportunity/#comment-155075 [...] Mike Seiman of CPX Interactive has written a nice guest blog post on the Right Media Blog about the untapped opportunity of working with “Lower-Tier” ad networks and reevaluating what they can do for you. [...] […] Mike Seiman of CPX Interactive has written a nice guest blog post on the Right Media Blog about the untapped opportunity of working with “Lower-Tier” ad networks and reevaluating what they can do for you. […]

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