Re: CPM Pricing Models

From: Andrew Bourland <andy_at_bourland.com>
Date: Fri 18 Jan 2002 15:46:41 -0500

On 1/17/02 "Rob Frankel" <Rob_at_RobFrankel.com> wrote:

> 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.

Rob, I love ya, but your being a "branding expert" while
becoming the leading apologist for CPA just doesn't work
for me.

You're a really smart guy who has developed a brilliant
online strategy, with numerous revenue streams including
fixed rate advertising, CPA advertising, book sales, tape
sales, consulting fees, speaking fees and probably some
others I'm not aware of (FrankelBiz frisbees perhaps?).

You are a living, breathing case study which many of us
should watch closely to see how to do it right.

But let's talk about the above...

What is "over" is the artificial playing field we were on
a few years back, when VC and IPO dollars fueled an
advertising frenzy in a medium which still
needed time to figure out what worked and what didn't.

The pendulum has swung the other way now, but this CPA
obsession is just as absurd in its premises and execution
as were $150 CPMs on Yahoo!

Can CPA work? Sure it can. Can CPM work? Absolutely. But
as you have said many times, you use the appropriate tool
for the job. Crest toothpaste shouldn't be advertised on
a CPA basis. Other things do, as you well know.

Bottom line, I think online publishers would do well to
take a few lessons from your example and not count on but
one revenue stream.

Give to your audience in terms of free advice, support and
information, but only to a certain level. When it reaches
the appropriate level, have a nice menu of information,
products and services that they can invest in to better
address their needs.

Andy

--
Andrew Bourland
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Received on Fri Jan 18 2002 - 14:46:41 CST