TradeTracker

a4u Expo EuropePanel Debate 29th April 2009

2010: Major Publishers and the CPA advertising model.

According to a report by Forrester Research, 'Growth in European ad spend will slow to 10% in 2009'. We've already seen traditional CPM advertising come under pressure as clients and agencies look to find advertising models based on results. Is this shift an opportunity or a threat for the industry?

There are many questions being asked. What are the implications for smaller publishers? What will be the impact on merchants? Will there be cookie dilution? Should the industry embrace this movement? Could commission rates change?

 The year 2010; Performance based advertising has become

the no. 1 advertising business model.  

>> Tabel

Marcel Groot, Telegraaf Media Nederland.

Branding and the CPM model are the future for advertisers who want to attract new business. It is not the major publishers’ role to sell on commission.

Justin Sandee, PCM Publishers.

Online Advertising has different business models for different circumstances. Publishers also offer different opportunities to let advertisers achieve the best results.

The different PCM websites are strong brands and offer qualitative content and it would seem reasonable to pay by CPM, not only because of the branding value but also because of the qualitative reach and possible partnership opportunities these brands represent.

Caroline Ferguson, Leads2Travel

As CPA changes the role of the publishers, only the best and most professional advertisers will be able to make a profit from this model.

Product: Flights to Curacao               

Client Fee     Ratio         Position site

  CPM CPC CPA CTR CSR VAL ECPC ECPM  

Client A € 28,00     1.6%     € 1,75 € 28,00 4 TRADITIONAL

               

Client B   3.5% 29% 0.9% 1420 € 0,45 € 129,71 1/2

               

Client C   € 0,10 € 35,00 21% 0,9%   € 0,42 € 87,15 3

               

Client D   € 0,24   5%     € 0,24 € 12,00 5 TRADITIONAL

               

Client E     € 18,00 49% 2.3%   € 0,41 € 202,86 1/2

Product: Flights to Curacao               

Client Fee     Ratio         Position site

  CPM CPC CPA CTR CSR VAL ECPC ECPM  

Client A € 28,00     1.6%     € 1,75 € 28,00 4 TRADITIONAL

               

Client B   3.5% 29% 0.9% 1420 € 0,45 € 129,71 1/2

               

Client C   € 0,10 € 35,00 21% 0,9%   € 0,42 € 87,15 3

               

Client D   € 0,24   5%     € 0,24 € 12,00 5 TRADITIONAL

               

Client E     € 18,00 49% 2.3%   € 0,41 € 202,86 1/2

Jack Schilder, Hotel Booker B.V.

In times of crisis companies are looking for the most profitable way to spend their budget. I think that most companies could make use of a CPA model.

Niels Aben, IMpact Retail B.V.

Advertisers, especially in these times, focus more on conversion. It is, therefore, logical that a good performing publisher receives a higher fee than less performing publishers.