Publishers Won't Be Paid More, They'll Just Be Paid

The idea, said Chief Marketing Officer Troy Young, is if one site has an interaction or engagement rate of 0.2% and another has a rate of 2%, the publisher delivering the higher rate should get rewarded for that by having the advertiser pay more for the ad.

He said the medium will move toward that kind of accountability system not only because it can be measured (as opposed to more-traditional media, where interaction isn't as hard to measure) but also because there's a ton of inventory. "Advertisers will ... push risk back onto publishers," he said. "There will be a measurable component."

I'd hate to have Troy Young negotiating my media buy! The fact is, if publishers aren't doing well, they'll be kicked off the buy in the first place. And for those doing well, just because they're doing VERY well for one client doesn't mean their inventory is worth more in the market. Until inventory is sold out on a site, it's all worth the same regardless of the advertiser. For now, this will mean that sites that perform will simply earn the privilege of staying on the buy.

Probably Overstated, But Eye-Opening Nonetheless

This article probably flew over the offices of large media agencies like a lead balloon!

6% of the population generates 50% of all clicks, and 16% generates 80%? That's quite a statement. Let's assume it's true, does it render 80% of online advertising worthless? Of course not.

How many clicks does a TV buy get? None, but it's certainly not worthless. An outdoor board doesn't generate any either, but they've been proven to be very effective. But what about CPC buys - aren't we focused on the wrong thing? Not really.

CPC buys are a great way to a) drive web site traffic (and actions/purchases on sites can't occur without traffic), b) procure highly efficient inventory, and c) minimize cost risk while determining what traffic sources drive ROI on your site.

Sure, CPM buys offer more flexibility in certain circumstances. However, hundreds of other companies, like us, have verifiable proof that clicks and CPC buys lead to measurable sales increases and positive ROI. If it didn't work for Starcom, we're always here to help :)

Taming The Wild West of BT

Hats off to Revenue Science for trying to herd the kittens and set some BT standards within the industry. And, shame on Tacoda for sitting out. Nothing like a dash of spite to move the industry along - jeez.

The bottom line for marketers is that right now we're all simply trusting publishers and networks that they're being truthful in applying the correct targeting to our campaigns. That kind of trust is ok when a couple thousand dollars are being spent, but hundreds of millions? Approaching a billion?

Rather than try to resist, we should all join the conversation and work together to solve this problem, which is one that could seriously catalyze our industry in the coming years.