'Let's Kill the CPM?' Not Yet

by: Ashkan Karbasfrooshan

Former CNET CEO Shelby Bonnie authors a "Let’s Kill the CPM" post on Tech Crunch - incidentally, the blog that wants to kill CNET.

Definitions and Lingo

For more on CPM, CPA and CPC, along with other web marketing lingo, read this: Landscape and Definition of Online Advertising Marketplace and Ecosystem.

Define Value

When I was a VP of Ad Sales at an online publisher or in my current role as CEO of a video production/distribution company, I ask my would-be clients to give me

1- a budget
2- an answer to the question: what would make you renew with me?

You Killed the Internet

Clearly not all marketers wants to admit what number one is and most don’t even know how to answer number two, but the truth is, a lot of smart people were drunk on AJAX and wanted to kill the pageview (read my thoughts here) and today a few people want to kill the CPM metric, I think, out of their frustration that social media (user generated content, specifically, so YOU) has made inventory mushroom exponentially, which, combined with the recession, has made ad rates plummet.

Sales Trick Par Excellence: Just Give People a Reason to Give You Money and They Will

Ultimately, I think most marketers will use a combination of CPM, or CPC, or CPA to be able to justify their marketing expenses and decisions… but so long as you provide them value based on 1 and 2 above, they will gladly fork over the cash.

There’s no need to kill anything, just understand how to use them and sell clients on the big picture. Most marketers internally know that all of those metrics, as well as audience measurement tools and everything else that is used to make decisions are a means to an end.

We’ve doubled revenues in the past 6 months and were profitable off operations in July… but I can’t recall the last time I even used the words CPM, CPC or CPA with a client. Clients recognize value when they see it… there is no need to kill anything or anyone if you get that.