Are we moving to a CPC buying model?
Posted by dhamman | March 26th 2008
As an agency with its roots in search, we are very aware of the capabilities of the major engines across all aspects of search but also their growing offerings in display. In fact, we have tremendous success by buying on a CPC basis through Google for our clients, especially in North America.
There is an ongoing discussion within the industry and within our agency as to the direction media buying will take.
On one hand, the growth of Google et al in this sector is likely to increase CPC and even CPA traffic, something that will happen exponentially with the acquisition of DoubleClick and the launch of Google Ad Manager.
However, from another perspective, ‘good’ publishers are in a position of strength and can choose the way in which they sell the first 60-80% of their inventory. What they do with the remaining 20-40% is up to them, but we don’t necessarily want to focus on buying this remnant inventory anyway.
Last week though a major publisher took a big step in one of these directions; ESPN.com has announced it is cancelling its arrangements with its media house and also the ad networks it does business with. Instead they are moving more to a direct model selling what is likely to be more premium custom packages.
Google et al will continue to grow in this sector, but if publishers like this decide not to fuel the ad networks growth then we won’t be seeing an entire CPC marketplace anytime soon.
And it makes sense for publishers to do this. They own the product and if ad networks continue to grow they will hold too much of the power and could lower the overall effective CPM rate that a publisher can achieve.















