Posted by: Matt Shanahan The digital world has changed the revenue dynamics for publishers. In the print world, a publisher’s shipment of physical media was the basis for generating revenue. In the digital world, availability of media is insufficient to generate revenue. In the digital world, consumption of media is the basis for revenue generation both in advertising and subscription models. In other words, engagement is the unit of monetization. For me, the most striking example of this move to engagement as the unit of monetization can be found in high profile companies like Demand Media relying on algorithms and SEO to generate engagement. Another example is how some publishers chop up their content into smaller fragments to generate more [...]
Archive | October, 2010
CPS in a World of CPMs
Posted by: Matt Shanahan AdExhanger ran an op-ed piece today why to price advertising in cost per second of engagement (CPS). But how can a publisher make practical use of this metric right now given the entire market is CPM based. We have several B2B media companies taking advantage of engagement data to drive up CPMs by using the concept of CPS very simply. For the sake of this post, I’ll refer to a fictitious publisher called Acme Online. In a similar circumstance to our real customers, Acme Online is an established publisher in their market segment. Any strategies that focus on growing advertising revenue by increasing unique audience members would have payback but step function growth is unlikely. Their [...]
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