Re: In response to the CPA/CPM battle

From: John Gaskill <jg_at_info-central-usa.com>
Date: Tue 22 Jan 2002 20:13:56 -0500

Jason Geraci <jgeraci1_at_hotmail.com> wrote:

>This is all so interesting...the titanic battle of
>publishers versus advertisers, or as we all like to
>call it...cpa vs. cpm. If you sell something I may
>get paid vs. please pay me for the service I am
>providing for you. Unfortunately, a lot of
>publishers have "whored" themselves out to advertisers
>with the idea if we do it often enough we may make
>ends meet. Conversely, advertisers have allowed
>themselves to stray away from the old Coca-Cola
>strategy of just getting awareness out there...
>conversions will come in due time. I have numerous
>advertisers who advertise on my site on a cpm basis...
>but I have had to get this horrible idea of cpa out
>of their heads.

Jason's comment brings up an interesting point,
one that has been made before, and one that his
apparent actions confirm.

In spite of all the complaining about CPA vs CPM,
how a site "rents its audience" to an advertiser is
still determined by the site operator and the advertiser.
The amount of rent is influenced, not dictated, by
market conditions. Landlords and tenants have
the power to say, "No thank you," even in overbuilt
markets.

If one deals with a network, the network is the advertiser.
The companies using the network are transient guests,
much like the folks who stay in hotels for a night or two.

>I have resigned to the fact that advertisers look at
>people who don't immediately click-thru as worthless.
>Period. If they don't feel this way then how can they
>justify paying cpc or cpa rates. When the public finds
>out about this they are going to be very upset...I
>can't wait. As I gain influence in the advertising
>world I will continue to espouse these principles until
>the disgusting cpa/cpc monsters is gone forever. This
>crap of "branding isn't happening through impressions"
>is the biggest lie I have ever heard. We have heard
>the adage "if you hear a lie often enough...you begin
>to believe it." It is true and we all know it and that
>is why branding works. The BIGGEST problem with cpa/cpc
>is that it allows advertisers to use crappy, low-cost,
>worthless ads to try and accomplish an important
>objective. Either allocate money for good ads or pay
>cpm...it is that simple.

As long as starting up a web site is such an easy
proposition, there will be more web sites wanting
ad revenues than there are advertisers willing to
pay to advertise on those sites.

As long as that is the case, the struggle between
publishers and advertisers will continue over the
issues of CPA vs CPM ad rates. Ad rates may
go up, but the market will expand to keep prices
down, mostly through the natural actions of those
getting CPM rates and their desire to increase the
number of M's they're getting CP's for.

My two cents worth.

My advice, deal direct with advertisers and work out
mutually beneficial relationships. But this has all been
said before... and still the battle rages..........

Regards all,

John Gaskill
jg_at_Info-Central-USA.com
http://Info-Central-USA.com





Received on Tue Jan 22 2002 - 19:13:56 CST