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Performance Pricing Models Could Change Everything

  • ClickZ, Wednesday, January 28, 2009 4 PM
Hollis Thomases presents tips on outlining a performance media planning strategy. "As more ad inventory becomes available, publishers who once might have only accepted CPM buys have suddenly become open to performance pricing models," she writes, suggesting that could change the way media planners look for space to place ads.

Thomases suggests doing the math by "back calculating" metrics from an actual sale to determine what the company can afford per lead or per click. It's important to understand the entire conversion process and the number of visitors who turn into leads. You also need to know how many "leads turn into sales, how many times you need to call or e-mail a contact before a buy, the value of that sale, and if there's recurring value to that customer, among other factors," she writes.

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