The Open Agenda

The WSJ has posted a timely article on the future of online display ads.

In line with our sentiments – the futures looks like new formats and new ways to price them. Out are impression-based models (CPM) and in are performance-based pricing models.

Read my comments below.

All I can say is – about time!

I have to disagree with Karen’s assessment. It’s absolutely right that marketers and advertisers only pay for engagement online. After all, it’s really only possible online (for now) and we should be using the medium for what it can deliver – transparency, measurement and accountability.

The model of buying impressions is antiquated and should be dispensed with. After the first wave of the internet when big brands rushed to build a web presence (with no real clue as to why other than they have one so we need one!) there was a mad rush to generate some ROI. In came ‘print models’ – impression based pricing models (circulation) and fixed ad placements. It’s definitely time to move on.

The reason why we should is simply because we can. We an create better ad formats that deliver deeper engagement and price them accordingly. Cost per action, cost per engagement are just a couple of the metrics that will replace inevitably CPM.

Let’s also keep in mind that as content shifts from singular destinations to be made available across multiple digital locations, the pressure to price online ads around agreed performance metrics will compound.

I take the point regarding billboards – but until there is a better alternative to price them – we’re stuck with the old methods. This to will undoubtedly change.

You also mention “that an ad is not a point of purchase sale and the website or other media upon which an ad sits is not a store that vends the ad’s products.” Why shouldn’t the ad be a point of purchase? Brand Awareness and DR needn’t be mutually exclusive.

Let’s move forward…

http://thisisopen.com/blog

Tags:   CPA · CPE · CPM · display media · online advertising · Online advertising metricsNo Comments