Advertising pricing models on the web

If you're interested in the likely future of how advertising revenues are to be derived from the web, it is worth reading the white paper titled "Advertising Pricing Models for the World Wide Web". You can find this by going to the white papers database on this site at http://www.e-consultancy.com/knowledge/whitepapers/search.asp and searching on 'advertising' - there are other useful white papers there as well.

Key points and arguments in this white paper are as follows:
- currently a lack of standards is inhibiting progress
- CPM based pricing models are currently dominant
- interactivity metrics will increasingly supplement and even supplant CPM pricing models (cf. Procter & Gamble case study)
- defining these metrics and standards is one thing, actually implementing the required cross-channel data capture, integration, analysis and reporting is still a big hurdle to overcome.
- hybrid models and increased risk sharing between media owner and advertiser with a more results-driven focus are likely to become the norm

Other useful sections include:
- figures projected the growth of online advertising spend from the likes of Forrester and IAB
- the change in average CPM rates over the last 4 years (declining)
- a relative comparison of CPM rates in other media
- the change over the last 4 yrs of average click through rates (declining)
- the relative decline in click through rates based on the number of times a user is exposed to the advertising
- a comprehensive bibliography pointing to other useful material