mid 90s

Agency Compensation Increasingly Fee-Based

source: http://www.marketingcharts.com/wp/topics/financial/agency-compensation-increasingly-fee-based-36008/?utm_campaign=rssfeed&utm_source=mc&utm_medium=textlink

ANA-Agency-Compensation-Agreement-Trends-Aug2013Agencies are increasingly being compensated on a fee rather than commission basis, a shift that first took place in the mid-90s and appears to show no signs of slowing, according to final study results released by the Association of National Advertisers (ANA). The 98 client-side marketers responding to the survey, who represented more than 1,000 agency agreements, indicated that fee-based agreements dominate (81%) in comparison with commission-based (5%) and other (14%) methods.

Tags: , , , , , ,

Friday, August 23rd, 2013 news No Comments

VC Explains Why A Founder’s Initial Idea Often Doesn’t Matter At All

Source: http://www.businessinsider.com/vc-explains-why-a-founders-initial-idea-often-doesnt-matter-at-all-2012-6

laura sacharInvestor Laura Sachar says she can spot entrepreneurs who have ideas, but don’t know how to execute them.

Sachar, general partner and founder of StarVest Partners, has been involved in early stage companies since the mid-’90s. She shared her insights on a panel at Business Insider’s Startup 2012 conference:

Sachar focuses on people in the early stage, because it’s about the belief that the person can figure out what to do with the business to make it successful.

Often, the initial idea is not how the company succeeds and drives revenue,” says Sachar. “Focusing on the people first, and a belief that they can develop attractive ideas and move from there, makes sense.”

There needs to be a clear path that shows that the person can turn the idea into something real.

“If you can’t execute, you don’t have a company,” she says. “A lot of people have ideas.”

Nowadays, companies don’t need as much money to get momentum. She suggests that you take more money than you think you need (if it’s available), because so many investors are looking for the companies that are gaining tons of velocity in the early going. By having that money, you have more resources to pull that off.

NOW SEE: 10 VCs And Founders Give Their Best Advice For Raising Money >

Please follow War Room on Twitter and Facebook.

Join the conversation about this story »

Tags: , , , , , , , , , , , , , , , , , , ,

Monday, June 18th, 2012 news No Comments

RTB – real-time bidding may make ad exchanges more efficient, but it still won’t save display (ads)

in response to this mediapost article
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=113621

While RTB will make ad exchanges even more efficient, it may not be that necessary.

RTB depends on 3 things: 1) inventory, which depends on how many people hit the page to generate an impression, 2) clicks, which depend on people clicking something, and 3) bidders, the more niche you get, the fewer bidders there will be.¬† Inventory does not change rapidly. Clicks take time to accumulate (to yield click rates, which are a necessary ingredient in the RTB calculation). And if there are too few bidders the price of the auction “item” won’t appreciate or depreciate much or rapidly. Because of these 3 things, making bidding real-time versus non-real-time (i.e. overnight) may not make it significantly better or move the needle much on efficiency and ROI.

And RTB will still not save “display” ads. The golden age of display was in the mid 90s when people tolerated ads when they read content. They are now trained to avoid looking at the top and right of web pages So while RTB may increase the ROI of display ads by increasing click rates from a percentage with too many zeros to count to something sligtly higher, display ads are still ignored by users and will still not generate measurable business impact for advertisers.

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Saturday, September 19th, 2009 display advertising 1 Comment

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

Augustine Fou portrait
http://twitter.com/acfou
Send Tips: tips@go-digital.net
Digital Strategy Consulting
Dr. Augustine Fou LinkedIn Bio
Digital Marketing Slideshares
The Grand Unified Theory of Marketing