Revolutionizing On-line Marketing: New On-Line Marketing Model and CPD Tracking Technology

Until now there have been four primary on-line advertising models widely used by online marketers:

- Pay Per Impression. CPM model.

- Pay Per Click. CPC model.

- Pay Per Lead. CPL model.

- Pay Per Action. CPA model.

In this article we describe a new model that was introduced by IdeaMama Ad Network, B2C & B2B marketing agency in April of 2009 – Pay Per Deal.

The Pay Per Impression model.

Cost per impression, often abbreviated to CPI, is a phrase often used in online advertising and marketing. It is used for measuring the value and the cost of a specific e-marketing campaign. This technique is applied with web banners, text links, and e-mail advertising.

An online advertisement impression is a single appearance of an advertisement on a Web page. Each time an advertisement loads onto a user's screen, the ad server may count that loading as one impression. However, the ad server may be programmed to exclude from the count certain non-qualifying activity such as a reload, internal user actions, and other events that the advertiser and ad serving company agree to exclude.

CPM (cost per thousand) is frequently used by advertisers; it relates to the cost for a thousand page impressions. For publishers the related abbreviation RPM (revenue per thousand impressions) is usually used.

Pay Per Click model.

For online advertising, the numbers of views can be a lot more precise. When a user requests a Web page, the originating server creates a log entry. Also, a third-party tracker can be placed in the Web page to verify how many accesses that page receives.

CPC is an Internet advertising model used on search engines, advertising networks, and content sites, such as blogs, in which advertisers pay their host only when their ad is clicked.

Websites that use CPC ads will display an advertisement when a keyword query matches an advertiser's keyword list, or when a content site displays relevant content.

The CPC advertising model is open to abuse through click fraud, even though some search engines try to implement various automated systems to guard against abusive clicks by competitors or corrupt Web developers.

Pay Per Lead model.

In CPL campaigns, advertisers pay for an interested lead (the contact information of a person interested in the advertiser's product or service). CPL campaigns are suitable for direct response marketers looking to engage consumers at multiple touch points -- by building member acquisition programs.

Pay Per Action model.

In CPA campaigns, the advertiser typically pays for a completed sale involving a credit card transaction. CPA is all about 'now' -- it focuses on driving consumers to buy at that exact moment. If a visitor to the website doesn't buy anything, there's no easy way to re-market to them.

Pay Per Deal model; revolutionizing the advertising industry.

Here is how Olga Kostrova, the CEO of IdeaMamaAdNetwork.com, a sales, marketing & advertising company, describes their innovative approach to on-line marketing. This innovation seems especially significant in the current economy where advertising budgets are shrinking and companies are going out of business due to their inability to reach their clients and solicit new business with limited marketing resources.

“CPM/CPC/CPL models rely on budgeted advertising dollars,” says Olga. “CPA is the only model that reduces the risk of low conversion because it is based on performance only (sales). While this opportunity is available for consumer products, and a limited number of business products and services that are sold on-line, it is absolutely not suitable for companies that close business off-line, or those that don’t rely on Web-based shopping carts for accepting payment. These companies usually have a long sales cycle or they market highly priced products and services. An average order can vary from $10,000 up to as high as $100,000,000. If you run an IT service company, real estate development company, or a luxury yacht manufacturer, there is no way you can use currently available technologies to run on-line Pay Per Action campaigns.

In contrast, our CPD (cost per deal) model is supported by powerful tracking technology. It is extremely beneficial for both advertisers and publishers. For advertisers it’s a new performance marketing opportunity. For publishers it’s a new avenue of traffic monetization -- collecting 5-20% in commission/finder’s fees for $100,000 deals can be a very lucrative way to generate new business. Plus, the CPD model minimizes the efforts of your marketing and sales staff. CPM is a hard sell, while CPD is a dream comes true -- who doesn’t prefer to pay a finder’s fee for booked business, instead of paying for advertising that may or may not be effective?. Pay Par Deal is simply best marketing model for those who wants their MROI to be consistantly high.”

Affiliate marketing derives its influence from the ease with which user activity may be observed and tracked across multiple websites and other media by leveraging the co-operation of a merchant and a network of affiliates who advertise or promote the merchant's offers.

While books, airline tickets, and other commodities may be sold this way, many products and services require a more consultative approach. Here the majority (or totality) of the sales process may occur offline. Unfortunately for the referral partners who initiate sales, there's no easy way to gain visibility into this process once it is in the hands of the merchant.

IdeaMama Ad Network addresses this problem by integrating the traditional tracking methods used by affiliate marketing with a system of tracking sales information as a customer moves through the sales pipeline. All information about the sale, such as the probability of closing, what part of the sales pipeline the customer is in, and other information is now available for reporting to affiliates.

Affiliates may now see a report from the merchant or ad/referral network that shows how many customers are at each stage of the sales process, how many customers (and their deal value) are at what probability of closing, the estimated time frame to close, and other detailed reports, in addition to the common reports about what campaigns are producing the best results. Without such visibility, affiliates lack the motivation to promote offers that have a longer sales cycle or those that are not easily tracked and verified.

The visibility into the sales pipeline is delivered to affiliates, allowing them to understand the potency of their promotion efforts and the likely gains they will experience. Naturally, they may view this information either online or through offline reports. In addition, the commissions that affiliates receive are clearly documented.

By applying the CPD (cost per deal) model, now publishers and affiliates can tap into a portion of the advertiser’s profits. It can become a lucrative opportunity for any potential affiliate who has a website – from a blogger to a publishing powerhouse.

The benefit of CPD for publishers:

- The potential revenue is higher because the commissions are higher than those for the CPM/CPC models – therefore more (and better) affiliates are likely to sign on.

- There is no risk for publishers, except, of course, for the value of the ad space they dedicate to the program; therefore starting from unsold inventory is a risk-free undertaking. It requires no resources from the publishers to track and monitor each sale, because the processes and the technologies that IdeaMamaAdNetwork.com provides are refined and very easy to use.

- Publishers can track the entire process from the moment users click on an ad to the moment they transfer payment to an advertiser. IdeaMama’s revolutionary patent-pending technology provides full transparency for publishers (isn’t this every affiliate’s dream?) letting them observe how their leads move through the merchant's pipeline.

- It not only gives them confidence in using their ad inventory for such campaigns, but it also enables them to estimate income from each campaign for the next six months using IdeaMama’s stats’ facilities and reports.

There has been a lot of buzz about publishers loosing business during the current recession. But now, because they can service previously untapped advertisers, the whole problem becomes insignificant, and their business may easily expand as brick-and-mortar merchants seek new ways of reaching larger markets.