“On TV And Video” is a column exploring opportunities and challenges in advanced TV and video.
Today’s column is written by Steve Wadsworth, president and CEO at Tapjoy . Many in digital advertising have been calling for the end of CPM pricing for years.
It is an antiquated pricing model that attempts to deliver on one goal – reach – but fails to drive any of the other metrics that matter to advertisers. Worse, the industry obsession with counting and monetizing eyeballs has led to unintended consequences that drag down the industry and devalue the user experience.
Yet most digital ads continue to be bought and sold on a CPM basis, and much of the blame can be placed on apathy and institutional friction. Even while some brands push for different models, their agencies continue to buy on a CPM because. That’s how it’s always been done and how the system is set up.
We need a new pricing system because advertisers are fed up with fraud, quality, lack of measurement and other issues. In some cases, they don’t know what they’re paying for. Fortunately, the technology, infrastructure and general mood of the industry are finally in a place where change might be possible.
If ads are no longer bought on a CPM, what might take its place?
Read More at The Original Article: adexchanger.com
