• B2C Marketing Insider, Friday, July 30, 2010 12:09 AM

Traditional media buying and planning is based on CPM (cost per thousand impressions). This model was developed for old media that wasn't -- and still isn't -- trackable, says Mitchell Reichgut, CEO of Jun Group. The Internet, of course, is trackable. So, why would an advertiser pay for "impressions" (the number of ads flashing before consumers) when he or she can pay for actual consumer interest and engagement? The consumer engagement model has worked out real well for Google. Their AdWords program charges advertisers only when someone clicks; impressions are considered meaningless and are therefore free.

He demonstrates that on a dollar-for-dollar basis, consumer engagement campaigns deliver significantly more value than CPM - they even deliver more impressions. Engagement campaigns have other benefits for advertisers, too. The results are guaranteed, so ads are displayed until they hit their numbers, rendering click-through rates meaningless. This model puts the onus on the publisher or distributor to deliver value. And, Reichgut claims, will save millions.

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