Re: CPM isn't dead, it's just sick

From: Todd Kellner <todd.kellner_at_list-universe.com>
Date: Tue 20 Nov 2001 21:03:05 -0500

JIM STERNE <jsterne_at_targeting.com> WROTE:

>Houston - we have identified the problem and it is
>semantic. Either you're selling advertising space, or
>you're selling leads.

ROB FRANKEL <Rob_at_RobFrankel.com> WROTE:

>No, it's not. If you have a new medium, you may have
>new definitions to apply to that new medium. If, on
>the other hand, you're simply trying to force old
>media definitions on to that new medium, I can see
>where you'd have a fit problem. I don't, which is
>why it works for me and mine.

The New Economy! Robust Platforms! Implementing
Next-Generation Paradigms!

It's amazing that, for some people, it's still Q1
2000, and more than a hundred years of research
and testing can simply be thrown out the window
due to this "new medium," which is in actuality
a moderately interactive broadcast medium quite
similar in form and functionality to "old media"
channels. Its only sins are its "measurability"
and the initial Gold Rush which boosted inventory
far beyond actual supply needs.

>It's not semantic at all. It is definitely strategic.

Speaking of "semantics" -- I still find it
amusing that a three-letter "advertising" acronym
was created to cloak an affiliate/retail program
with a quantity restriction.

Advertising:
"The activity of attracting public attention to a
product or business, as by paid announcements in
the print, broadcast, or electronic media."

Retail:
"The sale of goods or commodities in small quantities
directly to consumers."

CPA = Retail. CPM = Advertising. Let's cease this
misdirection ploy once and for all.

>Okay, that's where the confusion is. Editorial and
>advertising is what you're overlapping. There's no
>conflict there, either. It's still to the benefit
>of both the content provider and the advertiser to
>encourage trial.

And how, exactly, does the blurring of editorial
integrity aid the end user? How, then, is this a
sustainable model?

We've been pounded with a startling influx of CPA brokers
desperate to do business with us over the last few months.
As newsletters and Web sites continue to shut down and/or
cease publication, and the inventory moves more in balance
with the supply, CPM stalwarts are becoming healthy again.
Many CPA brokers are finding that they've burned through
their available inventory, and are left without a
sustainable long-term model.

One of the reasons for this?

Approximately 35% of the publishers on our network "will
consider" a CPA offer; 100% will accept a CPM campaign.
These 35% have seen every cell phone/credit card/widget
offer on the planet, and the response rate is down to
a pathetic trickle. How are you going to reach the other
65%? How are you going to maintain these customers after
the sale? The acquisition of new customers is far more
costly than the maintenance of a regular. This is elementary
stuff, yet CPA pundits continue to flog their dead-end
New Media Solutions.

There will always be a place for affiliate programs. It's
a handy thing to toss up on your site or in your newsletter
when advertising space is unsold. Certain products
(late night TV-type offers) lend themselves perfectly to
the model. It, however, will never replace advertising,
online or in any form of media, because its very nature
shortchanges both publishers and advertisers.

Thanks,

Todd Kellner
VP, Operations
http://Opt-Influence.com/
"The World's Largest Email Advertising Network"
http://List-Universe.com/
"The Email List Publisher Resource Network"




Received on Tue Nov 20 2001 - 20:03:05 CST