An agency person says, "Here we go again. Every November I get presented lots of 'great deals,' 'amazing opportunities' and 'special offers' on media plans that of course have to start right away. Do these salespeople know that hitting THEIR sales quota is not MY primary goal?
What should a billion dollars buy? The New York media twittering classes are speculating on where Hearst might invest its rumored billion dollar war chest that is speculated to be aimed at digital media. The team at Silicon Alley Insider suggested 10 companies Hearst should buy. I say, NOT SO FAST, MY FRIENDS.
Since it is the time of year that prognosticators attempt to predict the future, let me offer this: Within five years, CPM pricing will account for less than 20% of the total market. CPM pricing will eventually be relegated to a few hundred sites like WSJ, TechCrunch, and GQ where advertisers are willing to pay for the credibility that comes from associating with these publishing brands. The rest of us will be forced to sell on performance pricing models.
As a medium, we started this decade in such an aggressive rush to prove online "worked," and we have never shed this manic positioning. So everything we do, make, and sell gets positioned as something that will work right away. We need to stand behind our innovations, but stop promising advertisers that what we do works the second they take it out of the box.