In the battle between cost per thousand (CPM) and cost per acquisition (CPA), neither is destined to be the victor. So said a panel of advertising titans at the Jupiter Online Advertising Forum in New York.
Jupiter research reveals that the CPA model will comprise 30% of online advertising in the next year because of the weakened economy. But “over the long-term CPM will prevail because it’s a lot more efficient way to buy,” said Scott Moore, publisher of Slate magazine, reflecting the view of other panelists.
A Barnesandnoble.com banner served up next to a regular book review column is a CPA arrangement, Moore said. But a bn.com branding campaign would have to be a CPM deal.
One problem with online advertising that CPA arrangements accentuate is how difficult it is to measure performance based on clicks. “All we’re given for metrics is clicks,” Moore complained.
“One agency executive admitted he spends less on the Internet [than other channels] because he doesn’t want to be exposed when clicks don’t pan out,” said Mark Smelzer, vice president of national sales at L90.
Another difficulty with the CPA model is that advertisers don
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