Re: Cost-per-Action Advertising

From: Michael Ehlenberger <michael_at_premiumnetwork.com>
Date: Mon 11 Jun 2001 11:44:54 -0500

MICHAEL EHLENBERGER <michael_at_premiumnetwork.com> WROTE:

>Somewhere in this mass of "buying-model confusion" is a
>solution.

TO WHICH PHIL TANNY <info_at_subscription-service.com> REPLIED:

>Here's a bit of analysis and at least one solution
>as seen by this buyer.

>We all want to sell CPM and buy CPA because none of us
>trusts the other. The buying model of each transaction
>is determined by whoever needs the sale the least.

>If a seller, especially an agent, doesn't move product
>they generate no income for themselves. If a buyer
>can't find a comfort level with buying online
>advertising they have a hundred other profitable places
>they can invest their money offline until they reach
>their comfort level.


Phil, if I were a company with a fixed percentage of
sales marketing budget(=$0.00), I'd also be looking for
the "no-risk" CPA opportunity. The grim reality is
that I'd rather pump gas than go into business with
everyone looking to place CPAs.

It seems to me that a hybrid model would be more of
a fair compromise where publishers, networks, etc.
(who would like to PARTNER with CERTAIN advertisers)
would be guaranteed that they wouldn't loose money
taking your product to market. The reality is that
all these offers vary. Some want email addresses and
registrations, others want detailed qualification forms,
and still others want a credit card transaction to occur
before it is considered a payable event for the publishers.

As publishers, we have zero control over your product
offering, back-end conversion effectiveness, implementation
of technology, pricing, etc. We are being asked to put
everything on the "come line" for each of these deals.
While this is a horrible craps bet, it's even worse because
the odds are ever changing without notice or warning.
Compound that with "playing in the dark" and you can
understand why so many of us hesitate to get involved.

Ultimately, no matter which buying model is used to make
placements I believe we are all after the same thing. A
mutually profitable win-win relationship. I'll keep my
eyes open, and I hope that more people on this list can
contribute thoughts to this discussion.


Michael Ehlenberger
Director, Business Development
Premium Network, Inc.
408.360.9895 direct
415.284.1444 sf office
415.284.1482 fax

http://www.premiumnetwork.com
THE ONLINE ADVERTISING NETWORK



Received on Mon Jun 11 2001 - 11:44:54 CDT