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View Full Version : Fastclick Adopts CUME Model


LordBiO
11-29-2001, 12:51 AM
IAR reported today that Santa Barbara, Calif.-based ad network Fastclick said it has begun selling campaigns based on net cumulative audiences, over a four-week period.

The model, dubbed CPM-CUME, is based on traditional broadcasting's time-based Cume model -- which is based on the cumulative number of unduplicated consumers reached during a specified time period.

Fastclick -- which in large part specializes in pop-under ads with a one-impression-per-day frequency cap -- says it's ideally positioned to offer the new pricing type, because it concentrates on reaching a broad mass of unduplicated consumers.

The move comes as several site publishers, such as New York Times Digital, and the Online Publishers Association industry group, are looking into new ways of selling online inventory. Earlier this year, NYTD began selling "sessions," campaigns based on reach and frequency -- similar to the way that television and radio are sold.

As a result, some industry-watchers believe adopting broadcast-like metrics are key to attracting traditional advertisers and media buyers. Indeed, Fastclick said it expects to be able to charge a premium for CPM-CUME-priced ads sold on its network.

"A significant number of advertisers want to reach unique individuals on the Internet, rather than just purchase impressions," said Fastclick chief sales and marketing officer Jeff Hirsch. "Experienced media planners and buyers appreciate the value of a CUME purchase, while new media buyers will embrace the intrinsic value of an inherently high-reach program."

Some very interesting stuff, do you think it will work in attracting more traditional advertisers because they more comfortable with this model? I think it might, and as long as publishers are able to generate more revenue with this model compared to the straight CPM/CPC model then both sides will be more happier.

I hope other companies are coming up with things like this and coming up with new ideas and innovations because we need something to jumpstart the internet advertising space...something that will make advertisers more comfortable and also at the same time generate more revenue for us publishers.

Guava
11-29-2001, 03:23 AM
So basically this is like Unique CPM ads? They are shown 1 time each to 1000 different people? That sounds like a solid idea to me. CPC and pop*'s generally run on a unique visitor basis so why not CPM?

I think this is a good idea and might make more advertisers comfortable with it since it is indeed 1000 different people seeing their ad instead of someone seeing it 50 times. I guess we get to wait and see the results. If it makes advertisers a good ROI then they'll keep buying.

Czar
11-29-2001, 04:03 AM
I hope other companies are coming up with things like this and coming up with new ideas and innovations because we need something to jumpstart the internet advertising space...something that will make advertisers more comfortable and also at the same time generate more revenue for us publishers.
They are - in a fashion. The NY Times has pioneered the push from an 'impression-based' to 'session-based' metric for tracking and reporting online media buys in a bid to boost the medium's appeal to traditional advertisers who are more familiar with audience-based models rather than impressions, clicks and other net-centric metrics.

These 'sessions' function in a similar fashion to sponsorships, whereby users are shown ads from only one party as they navigate through a site, and the advertiser pays only when a user has seen a certain number of their ads. This may also help reduce the discrepancies caused by bots and other non-human traffic.

The NY Times' move has been embraced by the Online Publishers Association, who is pushing Sessions to its members, so it's likely that more will follow either FastClick or the NY Times in aligning their inventory with that of offline alternatives.

darnell
11-29-2001, 10:01 AM
From what I've ready about this model it works well for the NY Times. Fetching the equivalent of $50 CPM for them. I'm really glad to hear this and hope it works. It could literally save the on-line ad industry.

jnestor
11-29-2001, 05:34 PM
From looking at the FastClick site it appears they're applying this to pop-unders and not banners. Also this is just about the direct oposite of the NYT session based ads. The session scheme is meant to spread out a message across multiple pages. The user will see say 5 related ads from the same advertiser. The FastClick scheme simply prevents the user from seeing the same ad multiple times within 28 days.

The two schemes are clearly aimed at opposite advertiser needs. The sessions idea is that the banner is too small to get your message across. If you spread it across multiple banners that you know will be presented in a certain sequence you can "tell a story". Advertisers seem to think that's vital for branding.

The FastClick 28day unique idea is aimed at advertisers who are looking for clicks and not branding. You don't brand by presenting your message once.

darnell
11-29-2001, 10:09 PM
Good point jnestor. I pretty much assumed it was the NYTimes model, but reading the article again it is something different. I guess I read it with my own words the first time :p .