CPMs Hold Strong as the Standard for Digital Ad Measurement
Advertisers look to engagement metrics, but CPM cost structures are here to stay
October 16, 2013
“[T]he greater focus on engagement might have brands calling for pricing that follows suit. One such model is CPE, which native ad providers such as YouTube and Twitter offer. Such a pricing structure is a direct reflection of the metric an Online Publishers Association (OPA) and Radar Research study found the majority of US marketers used to measure native advertising: engagement.
Though for many, CPE might be a preferred performance metric, it is unlikely to become a ubiquitous pricing model. “The CPE pricing model can be hard because you need liquidity,” Anthony Risicato, general manager of video advertising platform VideoHub, said. He noted that networks such as Tremor Video or publishers such as YouTube, for example, are able to make such a model work because of their massive amount of inventory, wide reach and ability to more seamlessly integrate advertiser content with their own.”
Read the full story at eMarketer.