Re: CPM Pricing Models

From: Rob Frankel <Rob_at_RobFrankel.com>
Date: Fri 18 Jan 2002 20:18:11 -0500

At 3:46 PM -0500 1/18/02, Andrew Bourland wrote:
>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?).

Um, no. The current plug is http://www.i-legions.com,
but that's another story....

>
>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.

NOW you're talkin', Andy. I have no idea why everyone
tries to boil things down to simplistic, one-solution
levels. It's like when you go to the doctor for a sore
throat: if it's strep, you get anti-biotics. If it's
cancer, you get surgery and radiation.

Both will cure the throat pain, but first you have to
figure out which solution applies.

>
>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.
>

That's the second tier of development. That's when you go
from free to fee.
--

Rob Frankel, "Yes, I really do turn users into evangelists
for your brand."
Big Time Branding (TM) http://www.RobFrankel.com
Turnkey Revenue Generating Branded Communities:
http://www.i-legions.com
Subscribe for free! http://www.FrankelBiz.com





Received on Fri Jan 18 2002 - 19:18:11 CST