Re: New Pricing Model

From: Andy Bourland <andybourland_at_yahoo.com>
Date: Thu 06 Dec 2001 08:25:36 -0500

Jim Sterne <jsterne_at_targeting.com> wrote:

> I think I'm becoming a crusty old goat with plaque
> growing between the lobes of my brain - in other words: Huh?

Jim, you ignorant slut... apparently you haven't been
following the links that have been posted about this new
pricing model. Here are a couple of articles by one of
the chief proponents of session based pricing, Jim Meskauskas:

http://www.clickz.com/media/plan_buy/article.php/925991
http://www.clickz.com/media/plan_buy/article.php/928591

I'm not privy to FastClick's particular approach to session-
based pricing. <I'll let them speak for themselves>, but
from the articles, discussion and conversations I've been
following, will do my best to answer your questions...

Bottom line, it's a PRICING model, based on a PER SESSION
rather than PER IMPRESSION basis. So if you go to
andybourland.com and surf through 5 pages, 15 pages, 300
pages -- whatever -- that's one session the advertiser is
billed for. The session advertiser pays for the SESSION,
not the number of impressions it generates. I'm sure the
advertiser will want to KNOW how many pages you surfed
through on your session, but that's post game analysis,
not a billing matter. So you may be buying a million
unique user sessions on a buy, not impressions.

An aside.... I think there will be far less debate about
what constitutes a unique user session than what
constitutes an ad impression, and some of the disparities
between ad serving numbers may in fact disappear if this
standard is widely adopted.

Your questions below talk about how advertisers might
approach marketing to people on a session basis as
opposed to simple impressions.

What you read below are my opinions, but over time, you
will see a number of approaches evolve.
 
> So I can have my banner follow an individual around?

You could, but wouldn't that be annoying after a while?
I think smart marketers will design ad sessions that
evolve during the session...

I'm certain there will be a few morons out there that
will throw the same banner in front of someone for the
entire session and bitch later that the model doesn't
work.

They need to evolve a new interactive approach to
advertising based on the sessions model, not the
impression.

If you think about it, it gives you a whole lot more
time to build interest and doesn't need to be so OUT
THERE and intrusive...

> Sort of like session pricing, but across a network?

Bingo.

> Using cookies?

I would think it would have to, unless someone else knows
a way to do it without cookies.

> Does it have to be the same banner?

Like I said, some morons will use the same banner. I'd
recommend NOT using just banners, but a variety of ad
units, and build the message over the length of
the session. We should be going through a lot of
experimentation, trial and error over the next year on
this.

> Wouldn't they burn out on it?

If they use impression based marketing tools for session-
based marketing, they sure will.

> Could you explain this so even *I* can understand
> it and maybe put it in my next book?

Lemme know if the above doesn't make sense...

> Or is my brain made of Swiss cheese and I should just
> find a nice nursing home?

No. It's time to start a new book based on an industry
that is learning through trial and error what works and
what doesn't, and isn't distorted by billions and
trillions of dollars flooding in, forcing it to standardize
before we learn what really works.

Wish I were there in Santa Barbara, Jim!

Andy


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



Received on Thu Dec 06 2001 - 07:25:36 CST