What's Going On Here?

jetto

STRICTLY BUSINESS
Feb 20, 2010
703
5
0
You guys are very smart, help me understand this.

http://www.go211.com/surf/register/oc/

So... this website seems to be buying cheap popups/popunders to drive registrations on their site but...

check it out, they have: 3 display ads + 1 high CPM video ad.

After the video ad, the play their own video of a chick trying to convince you to "be rad" and register for the site.

So it seems to me they're driving registrations/branding of their site while offsetting at least a substantial part of the cost of popups with ads. I don't know the cumulative CPM of the ads they're displaying, maybe they're even making a profit if popups are cheap enough!

Is my understanding close to the truth?
 


It's like...if you took the best parts of Youtube*, and the best parts of Myspace**, and got rid of all the crap***

Oh man, this is gonna be big!



* the comments
** the ads
*** the users
 
But yeah that looks to be what's going on. Doubt they're making a profit directly. But if it offsets the cost of putting it in as many people's faces as possible, then maybe it's worth it.

I guess since so many people here are concerned with arbitrage, we forget (or never learn) about techniques in branding.