According to Media Post, Jupiter Research predicts a 59% increase in Internet ad spending by 2010, from $11.9 billion to $18.9 billion.
An impressive figure, but even more significant is what advertsiers will be paying for, on the Internet: “as search advertising gains in popularity, so too will pay-for-performance pricing models, predicted Jupiter Research. While 40 percent of online ads currently are purchased on a cost-per-thousand impression basis, Jupiter Research predicts that just 28 percent of Web ads will be priced on a CPM basis in 2010. At the same time, by 2010, 54 percent of Internet ads will be purchased on a cost-per-action basis--up from 43 percent this year.”
This continued growth of cost-per-action at the expense of impressions/CPM will increase the pressure on other media to offer behavioral compensation models. After all, it will become harder and harder for marketers to justify paying for a vague approximation (impressions) in “traditional” media when another medium allows marketers to pay based on their real objective: motivating consumer behavior.
*courtesy of Being Reasonable
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