AdBrite introduces Cost-Per-Click Auction for graphical ads
AdBrite has launched a massive cost-per-click (CPC) auction for graphical banner ads. AdBrite advertisers can now pay for graphical banner advertising in the same way they pay for search placements and text ads– paying only when their ad is clicked.
CPC auction pricing is a significant departure from traditional CPM (cost per impression) rates paid by most advertisers for graphical banner ads.
When direct-response advertisers pay per impression, they assume the full risk of impressions that may never convert into clicks or sales. In AdBrite’s CPC banner auction, display advertisers pay only for clicks. This lowers advertiser risk while increasing performance.
In addition to advertiser benefits, CPC pricing rewards AdBrite’s high-quality publishers by compensating them for the full benefit of their contributions to each advertiser. Many AdBrite publishers will see a significant increase in revenue.
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This will change the playfield. It will lower revenues because noone will go cpm, but it might attract more advertisers…
So, it remains to be seen.
By Adbrite on November 25, 2008 6:32 am
Hi Dennis it is really interesting. I am happy to know that AdBrite has launched CPC auction for Graphical banner ads. It is good that in Adbrite’s CPC banner auction, the advertisers pay only for clicks. Ya It would surely reduce the advertisers risk.
By Juno on December 6, 2008 2:04 am