(keitai-l) Re: tsutaya ads

From: Jonathan W. Anderson <jon_anderson_at_bmcmedia.com>
Date: 09/04/00
Message-ID: <NEBBIKGJOLBEIPLGKONMCENOCGAA.jon_anderson@bmcmedia.com>
I've looked back at my copy of the same (probably) article that Jeff

Some notes:
1) The click thru rate is about three times higher, but the article states
that the cost per click is only about 30% higher than for regular PC

2) Since they are a cost per click model, ValueClick only makes money if
you click on the banners (in this case text banners).

According to another article (probably Nikkei Sangyo, I only have the
and don't remember, sorry) they are selling 13,000 clicks at a cost of 115
per click, a total cost of 1,500,000 yen.  Assuming they get a 7% click-thru
Tsutaya Online got in their tests, ValueClick will need 185,714 page views a
to meet that click guarantee.  Since they are showing 1,000,000 text banners
(aka pages) a day, then the most they could be making a day is around
yen.  This drops to 5.8 to 6 million if you subtract ad agency fees (15% of
cost of the ad).

Just for reference, according to ValueClick's financial statement for the
period of January 1st to June 30th 2000, their total sales revenue for the
half year period ending June 2000 was 490,000,000 yen.


> 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 do
> not. Value click is already providing ads to 180 I-mode sites and sending
> about 1 million ads per day. According to experiments, there is a three
> times higher chance of clicking an ad on a mobile phone than on a PC. The
> per click ad charge is about 130 yen per click or three times the
> charge in
> the desktop computer area.  Value click pays about 15 - 25 yen of
> this money
> to the site manager and thus the remainder is income for value click. In
> other words value click is making about 100 million yen a day from these
> ads. Not bad.
> Jeff Funk
> Associate Professor
> Kobe University
> Graduate School of Business
> 2-1 Rokkodai, Nada, Kobe 657 Japan
> telephone and fax: 81-78-803-6913
> home phone: 81-798-74-2440
> e-mail: funk@rose.rokkodai.kobe-u.ac.jp
> mobile phone: 090-4906-3113
Received on Mon Sep 4 14:31:26 2000