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.
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