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Originally Posted by The Porn Nerd
The only "problem" I see with your business model - buying/selling "circle jerk" traffic or pushing dick pill ads on tubes etc - is that, eventually, advertisers will realize that this is just a giant circle jerk game. Sure they can convert once they get into the laws of big numbers - 100,000 hits here, $50,000 spent there buying 5 million clicks etc - but the margins are tiny and getting smaller all the time.
With adblockers, Google and others tightening their software to block annoying ads, etc I predict in 5 years or less those profiting from this circle jerk traffic will drop signicantly. Will it ever go away? No, not likely since there IS profit in it. But the cost to earn that profit will continue to go up as the companies that profit the most from these strategies continue to shrink.
Your game Thommy is based solely and strictly on huge numbers, mathematics and probabilities. That's awesome for the analytically and metric minded. But, in the end, only VERY large companies will be able to afford this kind of game where the basic investment is a minimum of 50k just to get any type of traction at all.
But, as you say, this is true of EVERY market. Those who work with Wal-mart will always insist everything is just dandy while the small community supporters of the local flower shop will bitch til they go out of business or settle for tiny scraps. So you know, good for you for working with the porn Wal-Marts of the world but your calculations don't really apply to us normal 'small business' types.  |
you donīt seem to know about my business model so let me explain you my thoughts.
when i was starting trafficfabrik there have been only CPM networks out there and here i saw the problem.
CPM is a method that is completely based on performance - means: an advertiser wants to have as many clicks as possible and assumes that there are a few buyers in a big number.
additionally the CPM model is an open door so decrease quality because however prices are falling a publisher just have to add one more banner and ready is the banner farm.
this is why i was going CPC only and everybody was laughing at this time about this idea.
as i do have a quite huge number of own sites I did not need a lot of publishers and also no other network or RTB shit to have traffic enough to start.
right now we do have not more than 80 publishers and nearly ALL of them are big or running huge networks but 100% of them I know personally and they are following my vision.
my vision is that a user clicks banner not for accident - I want he clicks because he is interested. sure that leads to a much lower CTR but the quality of a click is much more valuable. i also do not want that people go away from a site just because they where tricked - a user can buy today, tomorrow or next month or next year - it does not matter - but to do that he have to come back.
the coalition for better ads rules have been in my network long before coalition for better ads was existing - and believe me they are even harder than theirs.
no 500 kb animations - not even animations that never stop.
no fake chats - no fake closing buttons - not even a yes-no on a banner or something what could be understood wrong is allowed.
so and now letīs resume what have happend in this last 7 years:
COM prices went down around 50-60%
my prices went up 500%
7 years ago the network was already closed for publishers and worked on invitation only.
now it is also closed for advertisers because it is already too much competition inside the network. I do allow clean advertisers what are promoting stuff that is not already over promoted. I actually do not need new advertisers because i rarely lose one.
we also need to keep in mind that the really big buyers would not buy even the very best traffic when the numbers are too small.
big mediabuying agencies would not even try to buy when they can not spend at least 2000-3000 euro per day (but better more) because to maintain and optimize big campaigns makes less effort than big campaign. and a GOOD mediabuyer will laugh out loud when you offer him this job for 5 or 6 thousand dollar per month.
we are mainly focusing the german speaking market but even when we are so limited and when not many of you guys know us - we are the fastest growing adult adnetwork on the planet. it is not very hard to grow from year 1 to year to 100% and even in year 3 to 4 50% are not really rare. we are growing 3-digit since 7 years.
i started in this biz as a webmaster and i owned paysites - i even had my own payment system - so I really know this biz from EVERY point of view. there is really NOTHING what I havenīt done yet - but i come originally from advertising and this is where I am best - and this is why I focus on that.
I know that it will ONLY work when ALL people involved are happy and not only the advertiser OR the publisher OR the network. the art in this biz is to keep the balance between them.
so if you talk about advertising networks you can completely exclude me here because I have a VERY different idea of that and go - as I always did - my very special own ways.