A Modest Proposal For Fixing One of CPM’s Big Shortcomings


Finally, 20 years into the digital-advertising era, a growing number of industry voices are cautiously starting to question the long-term viability of pricing and measuring media on a cost-per-thousand, or CPM, basis.

In recent months, both publishers and advertisers seem to be openly looking for a new standard that addresses one of the CPM’s critical shortcomings — namely that not all “Ms. are the same. Some consumers are more engaged with the content compared with others, and these numbers may be smaller than we want to admit given the pressures to scale an audience in an age of infinite supply and smaller screens.

That’s not to say that the CPM is going away soon. A report from eMarketer on digital CPMs, which is based on nearly a dozen interviews with agency, brand, publisher and advertising-technology-industry professionals, concluded that the CPM will remain the dominant pricing structure. But the report also made it clear that all involved are on the hunt for suitable alternatives.

Continue reading at AdAge.com

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