RE: Is CPA vs. CPM the issue?

From: Michael Ehlenberger <michael_at_premiumnetwork.com>
Date: Fri 29 Jun 2001 11:53:38 -0500

PHIL TANNY <info_at_subscription-service.com> WROTE:

>Thanks to Michael Ehlenberger and others for the CPA/CPM
>discussion, I find it quite interesting and informative.

I would also like to thank Phil Tanny for continuing
to explore this subject. It seems to me that the
only reason why the CPA buying model exists is simple
supply and demand economics. The reality is that
since the dot.com down-turn, online inventories are
starting to tighten up a bit. While the supply still
is greater than demand, the buying models will
naturally move away from the least desirable (CPA).

I would love to say that we were successful with CPA
programs, but this isn't the case. I'd love to point
at the countless "tests" we've conducted and say,
"here's a model that really works", but I can't. I
can say that the types of CPA's that worked better
were ones that did not require purchases and / or
credit card information.

We continue to explore this model in an attempt to be
innovators. At the same time the reality is that many
of these campaigns cost more to serve than they
bring in. As a suggestion to buyers trying to place
CPA deals, you might want to consider a few things.

1. CPM & CPC buys can have protections built in for
you. They can include even delivery, and a 24-48 hour
cancellation period. If it's not working you minimize
your exposure.

2. If you are still stuck on CPA placements, consider
offering to pay a serving fee to the publisher. This
way us sellers know that you actually BELIEVE IN YOUR
PRODUCT, and are WILLING TO BACK IT UP.

3. Provide a list of references for the publishers.
Allow us to contact others who are running your offer
to learn more about what they have done to make it a
win-win.

I know one thing for sure, what has kept our company
in business for 7 years, and has allowed us to grow
to over 11 billion impressions per month is and always
will be our INTEGRITY. I hope that buyers who read
this will take time to contact me personally. We have
allot to offer, and a reputation that backs it up.


Michael Ehlenberger
Director, Business Development
Premium Network, Inc.
408.360.9895 direct
408.921.8824 mobile
415.284.1444 sf office
415.284.1482 fax

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



Received on Fri Jun 29 2001 - 11:53:38 CDT