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Re: Next Generation Pricing Models

From: Dilip DaSilva <dilip.dasilva_at_tribalfusion.com>
Date: Wed 28 Nov 2001 09:46:35 -0500

We find the Cost-Per-Daily-Unique (CPU) pricing model
the most compelling of all the available models. In
fact, we have already partially evolved the Tribal
Fusion network towards this model. Our minimum
requirement for member sites is 1000 daily unique
users, rather than a minimum number of impressions.
At the same time we maximize the reach of every
campaign on our network. So if you spend $1000 for a
single day on RON at $1 CPM, you would reach 1 million
unique users. We track daily uniques for each of our
categories. For instance you could spend $1500 for a
single day on the Technology category at $3 CPM and
reach 500,000 technology users. Although advertisers
purchase advertising using CPM, they are really getting
daily uniques.

We also find session based advertising used by the
NYTimes quite compelling. However, the main challenge
with sessions is accounting for sessions with too few
impressions. In the case of the NYTimes, they simply
do not count the session until a fixed number of
impressions have been served. Also, a single
advertiser owns the full session. From an ad network
perspective, we could offer a similar solution. But
then sites with few impression per unique user may
never be compensated. One solution we have considered
is lowering the CPM price for each subsequent exposure
to the same user. So the first impression may be $1
CPM, the second $0.75, the third $0.50, and so on.
This model seems fair to both the advertiser and
publisher.

Dilip DaSilva
President/CEO
Tribal Fusion, Inc.
http://www.tribalfusion.com




Received on Wed Nov 28 2001 - 08:46:35 CST


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