« The affiliate network is dead: long live performance marketing | Main | CPC, CPA, lead generation does not work »

January 17, 2008

Comments

PaulSweeney

Really tight neat piece.

David Cruickshank

Hi Paul,

Very thought-provoking.

I'm not sure CPM is so much a measure of performance as a pricing mechanism. Arguably, it's the application of CTR (click-through rate) to CPM that provides the performance measure.

Ultimately, Cost Per Action seems to be optimal for advertisers. It suits publishers less, because the intangible value of brand building is not converted into value for the publisher (amongst other reasons). In the online advertising market, the best model for buyer is not necessarily the best for seller too.

I see a bit of an ever-flux between CPM and CPA (with other options such as CPC and cost per lead inbetween) depending on market conditions. Advertiser-friendly conditions will cause a move towards CPA and Publisher-friendly conditions, CPM. My sense is that we are moving towards a greater abundance of inventory and eye-balls online which is why CPM will gradually give way to a more tangible arrangement in the medium-term, IMHO.

I like the idea of influencing influencers which is similar to one of the core messages in Gladwell's Tipping Point.

Don Jones

There is another belief system that says to NOT focus on influencers, focus on the "sneezers" at the grassroots level. They're the customers who then tell their friends...

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