MEDIA-I: LuckySurfAsia cuts rates to lure ads

<p>HONG KONG: US-based game site LuckySurf.com, which launched a local </p><p>game website called LuckySurfAsia.com six months ago, is hoping a drop </p><p>in the cost of its advertising will help attract Asian advertisers. </p><p><BR><BR> </p><p>The site, which mirrors the operation of its US parent, charges </p><p>advertisers for each time a user clicks through to their website. </p><p><BR><BR> </p><p>"Last year, our rate was US20 cents per click. Now it has dropped to </p><p>US14 cents per click," said Tommy Ng, chief executive officer of </p><p>LuckySurfAsia. </p><p><BR><BR> </p><p>Its fee structure is different from the traditional way of buying ads on </p><p>the internet, where an advertiser pays for each thousand times its ad is </p><p>viewed by a user. </p><p><BR><BR> </p><p>The site earns revenue by holding prizes until competitors click on the </p><p>site of an advertiser. "Like many companies, we have not seen very </p><p>positive advertising revenues because so many of the dotcoms have closed </p><p>or don't have the budgets to advertise. Last year, they made up 90 per </p><p>cent of our advertising. That's why now we aim to attract more </p><p>traditional companies that are more secure." </p><p><BR><BR> </p><p>Users taking part in the lottery game select seven numbers on the </p><p>website once online registration is complete. They then enter a draw to </p><p>compete for the top prize of USdollars 1 million, as well as other </p><p>promotional gifts and coupons. The website collects demographic </p><p>information during registration. </p><p><BR><BR> </p><p>LuckySurf.com generated USdollars 20 million in revenue last year. It </p><p>has 6.3 million registered players. </p><p><BR><BR> </p><p>"In the US, we reported a sell-out of all ad inventory on the site. We </p><p>had about 10-12 million clicks through to advertisers' sites per month," </p><p>Ng said. </p><p><BR><BR> </p><p>Advertisers have grown increasingly sceptical of clickthrough as a </p><p>standard measurement for the effectiveness of online advertising, </p><p>because it doesn't relate directly to the effectiveness of a campaign. </p><p>"We are one step ahead," claimed Ng. "We also offer cost per action </p><p>deals - we promote coupons as ads. So, for example, a restaurant </p><p>advertiser will only pay upon the successful redemption of its coupons </p><p>from our site." </p><p><BR><BR> </p>