[opendtv] News: Starcom Abandoning CPM Models

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
  • Date: Tue, 31 May 2005 08:34:46 -0400

http://www.broadcastingcable.com/article/CA604446.html?display=Breaking+News&referral=SUPP


Starcom Abandoning CPM Models

By Staff -- Broadcasting & Cable, 5/29/2005 11:52:00 PM

John Muszynski, CEO of ad-buying giant Starcom, Chicago, brought down 
the house at last week's Cabletelevision Advertising Bureau local ad 
sales conference in Chicago. On a panel loaded with some of TV's top 
media buyers, Muszynski declared that Starcom is abandoning 
traditional cost-per-thousand (CPM) advertising models based on the 
delivery of audience impressions. He wants to move toward 
"pay-for-effectiveness" models that reward media outlets for 
delivering consumers who are more engaged with his clients' messages. 
"Hear what I'm saying," he told the audience. "If you engage with 
consumers, we will pay you for it."

Cable execs love any kind of talk that might tilt money away from the 
broadcast networks, but this message, coming from the powerful 
Starcom, was especially significant. They've been preaching the 
"engagement" mantra for years, but now it looks like the agency may 
have figured out how to make it work.

Muszynski hinted that the new metrics resemble the kind of 
"cost-per-lead" generation deals used by the direct- response and 
online industries. But he wouldn't reveal any other details to B&C, 
saying that he wanted to wait until the current ad-buying season is 
over. The implication: Some of the deals the agency is negotiating 
right now may be using the new approach.
 
 
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