There has always been debate over which agency pricing model is best to incentivise your agency towards the same goals that you have been set by management. In this article specifically we’re going to look at the model of charging clients based on performance, also known as the CPA (cost per acquisition) model.
With its new Product Ads format, which could
potentially be offered on a cost per action (CPA) model as well as
cost-per-click (CPC) next year, Google is offering brands an entirely new way
to engage in and measure search advertising.
2012 looks set to be a huge year
for search.
Recently, Razorfish’s Paul Gelb suggested that the spend on mobile ads could soon surpass the spend on television ads, even though television advertising currently has a hundred-billion-dollar-plus lead.
There is, of course, good reason to believe that mobile advertising’s best days are ahead. Mobile penetration is significant, and smart phone penetration is growing rapidly.
We’ve been testing the performance of Facebook advertising on our
Facebook optimisation platform, and how it performs against search for a
test sample of brand clients.
We did this by running two simultaneous
campaigns across search and Facebook for each client (both campaigns are
designed to work together, with a similar message and content). We’ve
measured the impact of each on conversions (predominantly sales and
registrations) on each brand’s website.
Despite the controversy over the use of CPA offers in the virtual goods market, the business of offers continues to grow.
In an effort to innovate and differentiate itself, relative newcomer gWallet is combining offers with online video. With success, it claims.
There are a lot of reasons that CPM advertising can suck. In a post on TechCrunch this weekend, Shelby Bonnie, the co-founder and former CEO of CNET discusses many of them.
Because of CPM’s many faults, he makes the argument that online publishers and advertiser simply need to “kill the CPM“. In other words, go cold turkey on selling ads on a CPM basis. What to replace it with? We’ll figure that out later.
Mark Jackson at Search Engine Watch published a post yesterday about an interesting concept: performance-based compensation for SEO.
In it, Jackson describes a panel discussion at the Search Engine Strategies conference that took place in Silicon Valley last week. The panel, “Performance Pricing Models: What Every CMO Must Know“, broached the subject of performance-based pay for SEOs.
Consumers don’t like paying for anything online. This is especially true when it comes to younger consumers. Common knowledge, right?
Wrong. Just ask myYearbook, a second-tier social network that caters primarily to teens. It has managed to do something many other social networks haven’t: turn a profit. And it’s done it by charging its supposedly frugal Gen Y users.
Research for Econsultancy’s 2009 Online Advertising Networks Buyer’s Guide published this month has shown there is plenty of innovation within the display advertising sector even if there are too many ad networks without a distinct USP fighting for market share.
Three letters many of the online publishers I know love to hate: CPA.
The reason is simple: with CPA deals, the publisher only gets paid when
the advertiser makes money. Although in theory there shouldn’t be
anything wrong with this (we’d all like to believe that our properties
deliver ROI for our advertisers), the reality is that most publishers
don’t feel comfortable with the risk.