VideoEgg takes the lead in online ad pricing for cost per engagement

VideoEgg continues with the cost per engagement pricing bid.  The cpm rate is surely broken and charging the advertiser when the user actually touches or retrieves something from their ad sounds like a very logical way to go – of course not taking into account the number of us that have accidentally put our cursors over an ad or clicked on it by mistake – but its progress and typical charges are in the region of 50cents.  The focus for advertisers now is how to capture user’s attention rather than just impressions.  Nate Elliot of Forrester Research is another fan saying “Budgets ar getting tighter and every dollar spent has to do more.  If it helps advertisers get more bang for the buck, that will only be a good thing for advertisers and publishers”.  Display ad revenues fell by 4%  in Q4 compared to a year ago so introduction of new pricing and types of banners can only assist this market.

Online advertising changes afoot

Interesting article from Ben Kunz at Business Week hailing a change in online advertising practices and pricing. I agree that we marketers can get a lot more savvy at our targeting. I also agree as a person who is advertised to that I am more interested in getting ads that might have a relevance to me but… I dont like cookies and I disable them whenever possible. The key to real targeting is getting someone like me to buy into a cookie because its giving me something rather than a feeling that its snooping on me. That I think is the real challenge. I agree that smart marketers will drive down budgets and improve effectiveness of ad targeting as Ben describes. However, the really good marketers are going to be the ones that get me to unblock the cookies.

Sharing my thoughts and welcome comments as to how we get the cookie phobics to lighten up and will cookie generated advertising plays win. A pricing revolution looms in online advertising