(keitai-l) Re: tsutaya ads

-----Original Message-----
From:	dc [SMTP:dc@gamelet.com]
Sent:	Tuesday, September 05, 2000 11:03 AM
To:	keitai-l@appelsiini.net
Subject:	(keitai-l) Re: tsutaya ads

Jeff -

is valueclick's model all CPC (cost-per-click) as opposed to CPM (cost per
mille/thousand impressions)? In which case maybe they'll gain short term 
but
take a bath as soon as the CTR (clickthrurate) drops...

Hi DC and others interested in advertising issues,
   Value click only charges advertisers and pays sites by the click whereas 
an advertising firm called Digital Advertising Consortium (DAC) charges 
advertisers by the view. A nikkei article a couple of months back claims 
that the advertisers pay DAC 0.33 yen per view or twice the current rate for 
regular search engines (plus a fixed fee of one million yen per month). 
Interestingly, the high click rates are causing other firms to devise more 
sophisticated business models such as paying users to view advertisements. 
For example, according to another nikkei article, a portal site called 
Keitai Net has created a system with the Japanese Postal Account to have 
money deposited in an account when people view an advertisement. Users 
currently receive 15 Yen for each click. They can use the money to purchase 
products featured on the portal site or they can download the cash from the 
postal account. Keitai Net began its portal site at the beginning of June 
and by the end of June it had acquired 17,000 subscribers, it was receiving 
160,000 accesses a day, and it had eight firms advertising on its portal 
site.
   While the click rates will probably go down as someone else pointed out, 
the traffic on I-mode is rising quickly. The I-mode menu probably receives 
between 10 and 20 million views per day. If click rates drop to 1.0% which 
would be twice the PC rate according to steve wallace, this would mean that 
an advertiser would pay value click about 26 million yen per day (20 million 
x 0.01 x 130 yen) or 780 million yen per month. Docomo would receive about 
10% of that or 78 million yen per month. Docomo now receives 225 million yen 
per month for its clearinghouse service (10 million subscribers x 250 yen x 
9%). I may have made a mistake in my math but it looks as though the 
advertising income could start to rival the income from providing a 
clearinghouse service.
   This is why the rise in traffic to unofficial sites that renfield kuroda 
pointed out earlier is so important. By not providing this service 
themselves, docomo is missing out on potential advertising income. And if 
click rates stay above 1.0% say at the 5% level, docomo could make 290 
million yen per month in advertising. Of course, the reason why the 
unofficial sites are in business is that they are making money from 
advertising and perhaps a little from charging for information.
   Does anybody know if the unofficial sites are able to charge through for 
their information through a non-docomo clearinghouse? I've heard of other 
clearinghouses but I've never seen any references to income on them.

   Sorry for the long answer to your straightforward question.
Jeff Funk
Kobe University

dc

]  -----Original Message-----
]  From: keitai-l-bounce@appelsiini.net
]  [mailto:keitai-l-bounce@appelsiini.net]On Behalf Of jeffrey funk
]  Sent: Monday, September 04, 2000 1:57 AM
]  To: 'keitai-l@appelsiini.net'
]  Subject: (keitai-l) Re: tsutaya ads
]
]
]  There are a large number of articles about advertising on I-mode in the
]  nikkei shinbun. And it is interesting how little of this
]  information ever
]  makes it to the english press. I cannot understand why articles about
]  tsutaya make the english press while articles about value click japan 


	[excessive quoting removed]