Re: CPM vs. CPC vs. CPA

From: Andy Bourland <andybourland_at_yahoo.com>
Date: Wed 21 Nov 2001 15:51:21 -0500

DANIEL LIMBACH <dan_at_attritiongame.com> WROTE:

> I may be mistaken, but isn't CPM vs. CPC vs. CPA just
> different flavors of the same thing?

Indeed you are mistaken, Daniel.

CPC and CPA put the entire burden of risk on the
publisher, who has no control of any facet of marketing
other than serving the ads at their own expense.

Under CPM or flat rate models, the marketer assumes the
risk to create the kind of marketing pieces that people
will in fact respond to.


The math you use assumes ridiculously high response
rates <the old 2% clickthrough premise -- ha!>, assumes
that people will respond on the first pass through and
not come back later.

I agree however, that it's the publisher's responsibility
to develop and hone the highest quality audience possible
for their desired sponsors and advertisers. They need to
create an environment conducive for readers to respond
well to advertiser offers.

But it isn't their job to do the selling or to assume the
risk, unless they wish to become retailers themselves.

Andy


=====
Andrew R. Bourland
... Stay tuned!



Received on Wed Nov 21 2001 - 14:51:21 CST