Study: CPM Rates Do Not Equal ValueWritten by Pace Lattin
March 28, 2012 # 10:27 am # Industry News, Specials # 8 Comments
Interesting news out of the fine folks at Comscore today, where they kindly point out that the price you pay CPM has nothing whatsoever to do with the value of the advertisement. What’s new, I’ve been saying this for years, pointing out that with the industry rife with fraud, people not seeing advertisements and brand media buyers just lazy, you never get what you pay for. According to the study, which used 1.8 Billion impressions from advertisers like Allstate, Ford and General Mills, there is absolutely no correlation to a price you pay, and the value of those ads.
These handy charts that they provide shows that unfortunately, just because an advertisement is not seen, doesn’t mean that you actually pay a lower price. Meaning that people sometimes are charges just as much for ads that aren’t seen as the ads that are seen. Remember, approximately 30% of all ads are complete crap.
What does this show you? That the CPM marketplace that is full of exchanges, re-sold inventory and completely junk exists to make lazy media buyers happy. Again, this goes back to what the Performance Marketing industry has said over and over again: that these exchanges need to be focused on ROI and perhaps CPA advertisements. Most inventory is junk and needs to be sold on a performance-only basis.