news
$100 CPM - that’s a bargain
14 November 2008Matthew Duder, general manager, Eboss
I attended the IAB AGM this month for two reasons. I was nominated for one of the elected Board positions and I was interested in attending an IAB event without mood lighting and the quick consumption of sponsored refreshments. It was an impressive event, and the current executive should be congratulated on their excellent work.
With the formal proceedings over, some open discussion followed. One of the themes was the path to commoditisation of online advertising, and what type of measurement the industry should be supporting to limit this. As an owner of a niche site, I got to thinking about what future models I would like to see supported by the industry.
Let's press pause for a minute. Are the current measures used here the right model for NZ’s developing online industry, with its local potential audience of 4 million? If we had the opportunity to re-educate the market on how to value online advertising, what would you like to see changed?
What is the best model to capture the value that online creates? This is not about ripping off advertisers, but giving them more confidence to pay and therefore expect more. With the slowdown, the first pricing movements are coming from hungry, small publishers, sailing closer to the cashflow breeze.
With high fibre broadband only 14 months away, we will start to see a proliferation of publishers. What revenue model do we want them to adopt, rather than taking on incumbents and discounting to grow market share?
2009 will be a year for all IAB members to market aggressively online versus other media. If we win future opportunities to increase the market, how are we going to ensure that we convert them into long-term benefits for all? Our joint messages will include:
• Advantages and uniqueness of online v other media. Let's back ourselves to set aggressive benchmark media guidelines that look to allocate a minimum 10% of campaign budgets to online.
• Opportunities with particular publishers (large and niche) and their targeted audiences
• How you should value and measure the opportunities.
As rock music historically prospers in hard times, online should too. UK research has found the downturn is helping contribute to a growing market share for online.
Let's press play. The IAB represents a unique platform to allow advertisers, media companies and publishers to talk to and influence our smallish, growing industry.
So the question is, what would an advertiser need to see to happily justify $100 CPM? Or, more importantly, what is the appropriate measure that qualifies those eyeballs into our target customer, a shopper/evaluator/reader exploring great Kiwi content in another enjoyable online experience, providing a unique 1:1 moment for the advertiser to engage a targeted relevant communication?
If elected to the Board, I would like to use my position to encourage small publishers to join and integrate themselves into the IAB community; to build closer relationships with other publishers and advertisers and media companies, and to show price leadership.
What are the right measurements for NZ considering the current state of the industry, and the scale of our market?
What role should the IAB play in educating the industry on the "right" types of measurements?
What is stopping us working as a team to ensure this happens?
Many of you will argue that the market forces will take care of this. Normally I do not support market intervention, but I believe we have an opportunity to kickstart this medium and direct it. Let’s make sure the industry does not grow up too quickly, in trying to keep pace with our older cousins overseas.
Posted on Nov 15, 2008 - 10:37 PM
I attended the IAB AGM this month for two reasons. I was nominated for one of the elected Board positions and I was interested in attending an IAB event without mood lighting and the quick consumption of sponsored refreshments. It was an impressive event, and the current executive should be congratulated on their excellent work.
With the formal proceedings over, some open discussion followed. One of the themes was the path to commoditisation of online advertising, and what type of measurement the industry should be supporting to limit this. As an owner of a niche site, I got to thinking about what future models I would like to see supported by the industry.
Let's press pause for a minute. Are the current measures used here the right model for NZ’s developing online industry, with its local potential audience of 4 million? If we had the opportunity to re-educate the market on how to value online advertising, what would you like to see changed?
What is the best model to capture the value that online creates? This is not about ripping off advertisers, but giving them more confidence to pay and therefore expect more. With the slowdown, the first pricing movements are coming from hungry, small publishers, sailing closer to the cashflow breeze.
With high fibre broadband only 14 months away, we will start to see a proliferation of publishers. What revenue model do we want them to adopt, rather than taking on incumbents and discounting to grow market share?
2009 will be a year for all IAB members to market aggressively online versus other media. If we win future opportunities to increase the market, how are we going to ensure that we convert them into long-term benefits for all? Our joint messages will include:
• Advantages and uniqueness of online v other media. Let's back ourselves to set aggressive benchmark media guidelines that look to allocate a minimum 10% of campaign budgets to online.
• Opportunities with particular publishers (large and niche) and their targeted audiences
• How you should value and measure the opportunities.
As rock music historically prospers in hard times, online should too. UK research has found the downturn is helping contribute to a growing market share for online.
Let's press play. The IAB represents a unique platform to allow advertisers, media companies and publishers to talk to and influence our smallish, growing industry.
So the question is, what would an advertiser need to see to happily justify $100 CPM? Or, more importantly, what is the appropriate measure that qualifies those eyeballs into our target customer, a shopper/evaluator/reader exploring great Kiwi content in another enjoyable online experience, providing a unique 1:1 moment for the advertiser to engage a targeted relevant communication?
If elected to the Board, I would like to use my position to encourage small publishers to join and integrate themselves into the IAB community; to build closer relationships with other publishers and advertisers and media companies, and to show price leadership.
What are the right measurements for NZ considering the current state of the industry, and the scale of our market?
What role should the IAB play in educating the industry on the "right" types of measurements?
What is stopping us working as a team to ensure this happens?
Many of you will argue that the market forces will take care of this. Normally I do not support market intervention, but I believe we have an opportunity to kickstart this medium and direct it. Let’s make sure the industry does not grow up too quickly, in trying to keep pace with our older cousins overseas.
