Online advertising a new price model-IPC

As we all know, there are several different pricing models in http://www.aliyun.com/zixun/aggregation/7714.html "> online advertising, the main CPM, CPC and CPA. But, recently, Ari Rosenberg introduced me to a very novel pricing model, which is very interesting, and he has applied for copyright registration and now some mainstream advertisers and distributors have used this model. This pattern is called IPC, which is the price of each impression access.

Maybe someday we'll use this new pricing model. Here's a summary of my talk with Ari Rosenberg:

Q: Please talk about your experience and explain how you found the IPC price model.

A: I was the sales director of the Snowball.com website. At the time, we had three "portals", including IGN.com, chickclick.com and powerstudents.com.

On our website, I found that there are a lot of ads do not fit. My sales colleagues are very interested in ads that are different to the user's attractiveness. At that time, I also first knew why some activities would be cancelled because of poor advertising performance. It's a very strange feeling from traditional media sales, and I'm angry that they're canceling the projected revenue because their creativity isn't on the web. I know that there is no better way to express the structure of the trade, in which everyone gains and the performance of all parties is stimulated.

Q: It can be said that this is the source of the IPC price model, can specifically talk about an IPC price model?

A: The IPC price model refers to each impression access, IPC has been patented in the United States, the distributor agreed to set the price of the sale to configure the impression of advertising, and then based on their creativity to provide incentives for buyers.

Authorized publishers can use this pricing pattern in the following ways. They first have to establish a budget demand for the IPC price model, then they negotiate CPM and provide IPC.

Like what:

--a budget of 75000 dollars

--Paid CPM for 10 dollars

--the rate of pay impression is 7500000

--ipc:250

After the paid event starts, each click will receive 250 bonus impressions. As a result, the better the promotional activity, the more the reward impression gets, which means that advertisers pay a lower effective price for the user's access to the ads.

The IPC price model changes the way buyers and sellers talk, so the performance pressure of the activity is shared evenly. The more cooperation, the better the results achieved. Ironically, this pattern encourages click fraud, because fraudulent clicks help advertisers.

Q: What's the problem?

A: Despite the complexity of online advertising, there are only two ways to sell and buy ad space. The first is to pay based on CPM. In this way, advertisers worry about all the risks, because if the ads don't perform well, they still have to pay for advertisers to access users. The second approach is CPA, and "A" represents any identified assessment activity, such as clicks. In this way, issuers are concerned about risk because they will not be paid unless creative activity triggers and stimulates consumer action. In both models, there is a risk of imbalance in the purchase activity, which is primarily a potential conflict between buyers and sellers. This is also a concern of the IPC price model.

Q: Why does this model work for both buyers and sellers? Why does it get a patent?

A: First, answer the second question. In the history of media purchases and sales, rewards are part of a dialogue between the two, but they are always linked to the amount of money that advertisers spend. For example, if you purchase 8 pages of print media, as part of the agreement, you may get two bonus pages. The novelty of the IPC price is that it has nothing to do with the cost of advertisers, but to the quality of the users of their advertising-connected publishers.

So obviously, this model is good for advertising agencies and advertisers. But how does it help issuers who have the right to sell? The right distributor provides the IPC pricing model as an option for its customers.

For example, compare a distributor to a gym and a buyer as a gym member. Getting your gym membership is ridiculous because the gym doesn't keep you in shape. What happens if you lose one pound of weight and the gym offers you a week of free service? In this way, members will be more likely to exercise, to maintain a better shape, so that they will regain membership status.