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.