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Tuesday, August 31, 2010

CPM Dead, PPC Dying & Pay Per Fan (PPF) Evolving in Online Advt. Market

Tuesday, August 31, 2010
It’s not surprise that CPM in online advertisement is almost dead now in online advertisement industry. Then came a revolutionary Pay Per Click (PPC) model and Google AdWords won the trophy to replace CPM by relevant advertisement concept. After ruling almost one and half decade, it appears PPC is also dying because social media, particularly Facebook has redefined online advertisement market to give a way for Pay Per Fan (PPF) model.

Today, there are varied potential avenues for advertisers to collect ‘prospects’ information. In loose sense, I call ‘lead’. For example, the site like SlideShare has come up with ‘Pay Per Download’ model and Scribd has also come up with ‘pay for download doc/pdf). I’m not sure how successful their revenue models are but Google AdWords takes the major share via its PPC model. Nevertheless, the growing popularity of social networking, increased number of click frauds, increasing cost of keywords etc are disturbing elements for Google to face with. As a result, AdWords too is losing against social media and the whole contextual advt and PPC advertisement industry is making a paradigm shift to pay per fan (PPF) model to test its effectiveness. 


Though PPF is at nascent stage and many of us are not aware of the evolution of this model in online advertisement industry but the fact is it has already arrived and is evolving very fast to catch our attention.

PPF is purely an advertisement model that can be used by companies on Facebook to promote their brand. I’m sure Facebook has no objections if companies use FB platform to find advertisement avenues.

So far we have heard and know of companies that sell customer database to many SMBs on subscription basis but soon we’ll hear a thriving list of companies selling ‘Fans’ on Facebook. uSocial, is one such company that is trying to sell fans to Facebook advertisers, twitter followers, YouTube subscribers etc. I’m not sure how effective uSocial’s business strategies are but what I’m sure is that the company is very quick to adapt to the advertisement market for windfall gains.

In today’s social advertisement e-world where the number of fans you have is important to your brand’s perception and represents your popularity, why not purchase a few thousand fans? This appears to be the mindset of many online advertisers that are currently paying for new fans on their FB page. What an IDEA Sir ji! J

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