Re: CPM Pricing Models

From: Rob Frankel <Rob_at_RobFrankel.com>
Date: Thu 17 Jan 2002 20:16:56 -0500

At 9:27 AM -0500 1/16/02, Lucia Page wrote:
>
>We are moving to a new type of ad management system and
>we are now reviewing the way we're selling our online
>advertising.
>
>Any ideas about CPM pricing? If you have any models
>that we could review, I would very much appreciate it.
>Even if you're not in the newspaper industry, I'd still
>be interested in your thoughts.
>

Lucia:

This is going to be a firestorm-starter, as CPM vs. CPA is a big
issue. Although there are merits to both, my feeling is that now
more than ever, advertisers want to see return on investment that's
trackable. In my book, that means they're looking for CPA (cost per
action). The days of the "promise of the internet", where billion of
eyeballs flood through your home page are pretty much over.

There are still those who argue that CPM can work. It may, to some
extent. But the main ingredient is huge volumes of traffic, so that
the industry average of .25% clickthrough can produce anything
meaningful.

Personally, I prefer lower volume, high-quality traffic tied to a
clickthrough. I've found it delivers much high clickthroughs (4%)
and happier clients.
--

Rob Frankel, "Yes, I really do turn users into evangelists for your brand."
Big Time Branding (TM) http://www.RobFrankel.com
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Received on Thu Jan 17 2002 - 19:16:56 CST