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.
More affiliate industry news. I should get out more. In summary, advertisers could only bid cpm for image banners in the past, now they can bid ppc.
Why should I care, you might ask?
This move is very interesting in many ways. First of all, this will reduce publishers revenues. Why? Because all the smart affiliates used adbrite as an easy way to get cpm ads. I know I did. I used adbrite graphic only banners on my funny pics and video sites, because they were so crappy, the cpm networks did not approve them. And many other affiliates did. Now, from experience, those banners actually do get clicks, so that might counteract the lost revenues. The clicks are mainly due to Adbrite’s slack in incentives, deceiving graphics and all those “CLICK HERE” and “YOU WON”.
On the other hand, Adbrite has a general reputation for being crappy converter for advertisers. This move will draw more advertisers to the marketplace, thus increasing the available ads and general bid prices through competition. So, that way publishers might see higher bids and more ad spots getting filled up.
Apart from hearsay, Adbrite does infact have a huge partner network. I know for a fact that this was a great place to get cheap clicks for Crush and IQ crap offers. Maybe now Adbrite will turn into the next option after MSN and Yahoo.
If you are in any business for enough time, you know that there is a load of cash to be made on new stuff, when you dive in early. Take a dive.
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written by Glowleaf
\\ tags: adbrite cpc auction, adbrite ppc, banner advertising
December 10th, 2008 at 6:11 am
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.