Re: Is CPA really advertising?

From: Rob Frankel <Rob_at_RobFrankel.com>
Date: Mon 05 Nov 2001 10:28:08 -0500

KEVIN FRAZIER <kfrazier_at_adace.com> WROTE:

>I am a bit surprised that "Rob Frankel" the brand
>evangelist would be such a heavy supporter of CPA as the
>end all advertising solution on the web?

><<Snip>> <<Rob Frankel Wrote>>
>Unlike TV or radio or print, the web has the ability to
>make a CPA/CPC work. In fact, that's the only model that
>will ultimately redeem the web as a venue. That doesn't
>mean, however, that your site is responsible for making
>the sale. Your site is responsible for driving users to
>the advertisers' sites. You delivered the bodies to the
>door; it's their job to drag them in. If THEY don't make
>the sale, that's their problem, not yours.

>Forget the CPM model. It doesn't work on the web.
><<End Snip>>

>I hope those of us that are truly working toward creating
>a sound online advertising model will continue to look at
>ways to price our advertising inventory so it is
>effective, valued, and consistent. My previous post
>regarding charging over time, and basing CPM rates on
>unique visitors seems to be a step in the right direction.
>We can get more upside for delivered clicks when they are
>above a certain percentage. The CPM rate could be
>adjusted down if there was an agreement to share upside
>on the sale, but again this gets very difficult to track.
>I personally think we should stick to delivering the
>eyeballs, and let the retailers, suppliers, and
>manufacturers concern themselves with the sale.

Kevin:

Maybe I should elaborate:

Common "wisdom" out there is that "online advertising
doesn't work." Didn't say it was true; just said it
was a commonly held view. For that to change, you have
to make a strategic shift from "advertising equaling
awareness" to "advertising being directly responsible
for making the cash register ring."

For that to occur, we'll first have to show them that
online advertising does indeed make the cash register
ring, and in that regard, CPA is the way to go.

Mind you, I'm not saying that CPM can't work. I'm sure
some day it will. But not before the prevailing
perception of the web is that it can indeed affect sales.

Looking at it from another viewpoint, I can also tell
you from experience: CPA is much easier to sell, because
it's what advertisers want to buy. And there's nothing
in the playbook that says you can't toss in a
participatory arrangement to share the risk/reward.

We have one guy on PillowMail that should have taken
the dollar a click plan -- so far, through the affiliate
arrangement, we're earning about twice that.

--
Rob Frankel, "Yes, I really do turn users into evangelists
 for your brand."
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Received on Mon Nov 05 2001 - 09:28:08 CST