08 May Why cost per impression kills native
Native advertising is a premium product, or at least should be.
First, great native advertising answers the question of why the content’s sponsor is passionate about what she or he does.
Second, great native advertising has a long-lasting, long tail effect. It is impossible to count all of the eyeballs delivered to the native message, which may be discovered a month, three months or even a year after it appears on your home page.
Third, great native advertising gets shared via social media. How do you count these shares and the views they create over time in your CPV pricing?
Ad agencies are in command of native pricing at the national level, according to a recent Digiday article. These agencies will drive the price of native down to the least common denominator for all but a few elite sites like the New York Times or Wall Street Journal.
However, at the local level media companies are in command of their own native advertising destiny. Value pricing that commands a premium three to five times greater than online display ad pricing should prevail.
Cost-per-impression/view is a race to the bottom.
That’s a race you don’t want to run.
– by Paul Camp