Tuesday, January 15, 2008

Are Advertisers really willing to pay over 50% commision for this?

NetAudioAds has yet to reveal their "search engine" partner and still seems to be gaining steam in affiliate signups as well as others coming out of the wood work to to say how bad of an idea this is.

Not only can it really be determined what the real payout will to "publishers" the math I have been seeing does not add up. I have seen claims all over claiming as much as $30 cpm for publishers. Which would mean $120 cpm cost to the advertiser. I know you can get a 300x250 banner on comcast.net for $6 cpm or less which has a very broad reach.

I am speculating that the original advertisers, if there are any, will probably be gouged during the launch and will either wake up and push prices down or discontinue advertising. Another thing they are failing to tell publishers is if they are using ad agencies to sell this product they will be paying them agencies 20-30% right off the top.

For illustration only lets use $10 cpm and bread that down for the publishers:

The sales commission will take away 20% to leave $8 as the effective rate.

Of that they are to pay out 35% to publishers plus what ever override Pay Per Play is taking. That sure does not leave much for Voice2Page nor does it provide a real value to advertisers when the sales prices is loaded with over 50% in commission.

Lets get real - Does this really stand a chance for an advertiser or as a publisher?