Comments on: CPM vs. CPA – New Hybrid Performance Model Needed http://www.cpmadvisors.com/2009/10/16/cpm-cpa-hybrid-performance/ Welcome to CPM Advisors Wed, 03 Mar 2010 09:46:52 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Cornett Experience » When Companies Behave Like Incumbent Politicians http://www.cpmadvisors.com/2009/10/16/cpm-cpa-hybrid-performance/comment-page-1/#comment-971 Cornett Experience » When Companies Behave Like Incumbent Politicians Tue, 16 Feb 2010 16:59:13 +0000 http://www.cpmadvisors.com/?p=264#comment-971 [...] of tracking and confirming transactions present challenges for both advertisers and publishers. A new hybrid model is in order for a better long-term solution, but it won’t happen [...] [...] of tracking and confirming transactions present challenges for both advertisers and publishers. A new hybrid model is in order for a better long-term solution, but it won’t happen [...]

]]> By: Greg Hills http://www.cpmadvisors.com/2009/10/16/cpm-cpa-hybrid-performance/comment-page-1/#comment-44 Greg Hills Mon, 19 Oct 2009 15:19:29 +0000 http://www.cpmadvisors.com/?p=264#comment-44 As you note, structuring an ad buy as a CPA instead of a CPM is more than a transfer of risk from advertiser to publisher --- just as importantly, it aligns publisher incentives with advertiser incentives. I like VideoEgg's cost per engagement model, where advertisers pay a fixed fee whenever a user hovers over an ad for three seconds, triggering an expanded full page advertising experience. This creates a great incentive structure for Videoegg, a hybrid ad network and creative provider. VideoEgg is fully incentivized to create great creative that attracts attention. Unlike a creative agency, they have a direct financial incentive to build creative that drives creative performance. Also, unlike most creative agencies, they have direct access to campaign reporting data so there is a tight feedback loop between creative and performance. Data driven display partners can help advance clients marketing efforts by providing the creative agency with the tools to understand how creative decisions drive media performance. I think Burt's creative-focused reporting tools is a great start. As you note, structuring an ad buy as a CPA instead of a CPM is more than a transfer of risk from advertiser to publisher — just as importantly, it aligns publisher incentives with advertiser incentives.

I like VideoEgg’s cost per engagement model, where advertisers pay a fixed fee whenever a user hovers over an ad for three seconds, triggering an expanded full page advertising experience. This creates a great incentive structure for Videoegg, a hybrid ad network and creative provider. VideoEgg is fully incentivized to create great creative that attracts attention. Unlike a creative agency, they have a direct financial incentive to build creative that drives creative performance. Also, unlike most creative agencies, they have direct access to campaign reporting data so there is a tight feedback loop between creative and performance.

Data driven display partners can help advance clients marketing efforts by providing the creative agency with the tools to understand how creative decisions drive media performance. I think Burt’s creative-focused reporting tools is a great start.

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