The Financial Times is looking to innovate the pricing metrics moving from price per click, to price per time viewed. This is especially interesting given that these metrics marry more closely with traditional metrics (think commercial time).
I am interested to see how this strategy works. There are a few disadvantages that I see:
1) It is a passive metric, and nearly impossible to measure. The biggest advantage of the CPC method is that it is very easy to measure.
2) There is a high up front cost. FT is working to play up scarcity. Along with this, they must be looking to command a premium. This is a risky endeavor. In comparing price that is only expensive if effective, with something that is expensive in either case, it is difficult to argue for the latter.
3) Traditional media firms are just not as desirable currently. They seem to be coming from a place of weakness, rather than strength. Strategically, it seems difficult to shift the paradigm and charge more.
For more on this topic see the AdAge article below.
For more details, see AdAge's article here.
No comments:
Post a Comment