RE: Is CPA vs. CPM the issue?

From: Jason Tafler <jtafler_at_50plus.com>
Date: Tue 26 Jun 2001 12:43:03 -0500

With regard to the current CPA vs. CPM discussion, we
are a publisher =with both a leading Canadian niche
magazine and web site. Just as we never accept CPA
or revenue share advertising in our magazine, we do
not accept it on our web site either.

Coming from a successful traditional media background,
we look at it quite simply. Whether offline or online,
our major expenses involve creating unique, compelling
content and building an audience who will continue
coming back to read (and interact with) that content.
As a media company, much of our revenues are obviously
derived from providing companies selling products or
services with ACCESS to that audience, whether it be
through the magazine, web site, e-mail newsletters,
or any other medium, just as a host of traditional
media companies have done quite successfully for
decades.

On the other hand, a company selling products or
services obviously derives its revenue from sales of
those products or services, whereas a large portion
of their income statement expenses are often related
to upfront advertising and promotion of those products
or services. We pay to build the audience, we provide
the audience, you pay to reach the audience, you sell
your products or services, you keep all your revenues,
and its a WIN-WIN relationship as everyone involved
prospers. This obviously assumes a number of other
factors that contribute to a successful campaign,
including choice of media supplier, creative, etc.

Why this win-win relationship can't work online is
beyond us. Perhaps it's because it is still early
days and we need to prove that the online medium can
be effective as part of a larger integrated marketing
plan that includes both a branding element and a direct
response component (as many successful media plans do).
In that case, we are in this business for the very long
term and are open to testing and working with advertisers
to prove our case. But we look forward to the day when
quality media suppliers can get back to win-win
arrangements where they focus on building and keeping
their valuable audiences, while advertisers recognize
online advertising as an "upfront expense" of achieving
their business model and objectives.

Best regards,

Jason Tafler
Business Development Manager
Fifty-Plus.Net International Inc.
www.50plus.com
Phone: (416) 363-7063 ext.222
Fax: (416) 363-7693



Received on Tue Jun 26 2001 - 12:43:03 CDT