Re: CPA vs. CPM the issue?

From: Kim O'Connor <koconnor_at_planetoutpartners.com>
Date: Tue 26 Jun 2001 12:45:10 -0500

JANET ATTARD <attard_at_businessknowhow.com> WROTE:

>While there is some issues with trust and
>accountability, I do not think that is the main
>issue on CPM vs CPA or CPC. The main issue, IMHO, is
>the CPM if partly a branding type of ad, and businesses
>want the branding, but don't want to pay for it.

>The real issue from the publisher's standpoint is that CPA
>and CPC don't pay enough to support publications. Even online
>publications. If usage of magazine and newspaper ads were
>all trackable the way online ads are, how many would expect
>to be paid only when a sale was made or someone walked into
>a store? They don't even sell by "impression" really,
>because what's sold is the total readership, not the
>readership per page, which is really what CPM is. What
>would magazine or newspaper ads cost if someone could
>count the number of people who actually saw the page that
>had their ad on it? (How many magazines do you ditch
>unread? How many do you look at every single page? But
>they all charge you for their total readership.)

<end snip>

I agree. The problem is that online advertising is held to
a standard that no other media is held to. While I
understand an advertiser wishing the best ROI and deal
possible, if in the end it is not a win/win situation
the number of publishers will diminish or simply be
swallowed up by a couple of big players like AOL/Time
Warner. This does a disservice to the advertisers (in
that the less competition the less negotiation they have
on price) as well as the end users (less choice in
information is a big problem in my opinion!)

Kim O'Connor
Sales Director
PlanetOut Partners, Inc.
tel: 415.644.8035 | fax: 413-375-7132
*** Please note my new e-mail address: koconnor_at_planetoutpartners.com ***


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Received on Tue Jun 26 2001 - 12:45:10 CDT