MEDIA-I: LuckySurfAsia cuts rates to lure ads

HONG KONG: US-based game site LuckySurf.com, which launched a local

game website called LuckySurfAsia.com six months ago, is hoping a drop

in the cost of its advertising will help attract Asian advertisers.

The site, which mirrors the operation of its US parent, charges

advertisers for each time a user clicks through to their website.

"Last year, our rate was US20 cents per click. Now it has dropped to

US14 cents per click," said Tommy Ng, chief executive officer of

LuckySurfAsia.

Its fee structure is different from the traditional way of buying ads on

the internet, where an advertiser pays for each thousand times its ad is

viewed by a user.

The site earns revenue by holding prizes until competitors click on the

site of an advertiser. "Like many companies, we have not seen very

positive advertising revenues because so many of the dotcoms have closed

or don't have the budgets to advertise. Last year, they made up 90 per

cent of our advertising. That's why now we aim to attract more

traditional companies that are more secure."

Users taking part in the lottery game select seven numbers on the

website once online registration is complete. They then enter a draw to

compete for the top prize of USdollars 1 million, as well as other

promotional gifts and coupons. The website collects demographic

information during registration.

LuckySurf.com generated USdollars 20 million in revenue last year. It

has 6.3 million registered players.

"In the US, we reported a sell-out of all ad inventory on the site. We

had about 10-12 million clicks through to advertisers' sites per month,"

Ng said.

Advertisers have grown increasingly sceptical of clickthrough as a

standard measurement for the effectiveness of online advertising,

because it doesn't relate directly to the effectiveness of a campaign.

"We are one step ahead," claimed Ng. "We also offer cost per action

deals - we promote coupons as ads. So, for example, a restaurant

advertiser will only pay upon the successful redemption of its coupons

from our site."