TradeMe launches do-it-yourself ads for small-to-medium businesses
Internet auction site TradeMe has launched DIY ads for business with ad budgets between $50 - $2000.
Using ad builder software companies can create a banner ad with a logo and brand colours to upload onto the site.
TradeMe head of advertising Yael Milbank says the website first wants to attract motor dealers, recruiters and real estate agents to use the service.
Mr Milbank says the service is unlikely to cannibalise current advertising revenue based on its pricing.
“The pricing is quite different for self service based on the volume of spend more expensive for what an media agency would get.
The cheapest rate is $3 per thousand impressions, with premiums for more targeted advertising. In contrast the ratecard price for stuff.co.nz homepage and NZ Herald homepage is $25 per thousand views.
The company is currently using a manual process where every self-made ad gets scrutinised by staff, although it will look to automate this.
Mr Milbank says TradeMe is very conscious that DIY ads may cheapen the look and feel of the site - since the soft launch a month ago about 5% of ads had to be reworked to gain approval to get on the site.
Mr Milbank says TradeMe is pricing according to impressions instead of click through rate at present but wouldn’t rule out changing to a performance based measure in the future.
“We know there’s people buying on Google ads on a performance basis but CPM is how the site has sold inventory in the past and therefore we continue in that way.”
He says ads can be used for general messages for which a click through is less relevant.
“We believe there’s value in the branding message and therefore it’s not just about the click.”
The ads won’t appear on any of TradeMe’s mobile properties until next year.
MediaCom head of digital John Buckley says while TradeMe is off to a good start by using the similar rates to media agencies smaller companies are not able to negotiate discounts.
He says while TradeMe might well appear in an advertisers media mix it is rare that only one site can meet a company's needs and deliver cost efficiencies.