Would a Cost-Per-Engagement model attract advertisers to spend more online?

Over the past few years, CPM has become the common currency for online advertising. But is the model still relevant?

Should we be buying online media based on engagement rather than just passive consumption?

In the current tough financial period, would advertisers be willing to commit more budgets online if customer engagement was guaranteed?

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The big CPM squeeze

With vast amounts of inventory available, increased competition and dropping response rates, many publishers are seeing their display advertising CPM rates falling.

The challenge is to offer advertisers increased flexibility and new formats in order to protect margins.

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Online advertising networks account for one in five display ad buys

*** New report forecasts major growth for 2005 and beyond; ad networks generated £41.7m of ad revenues in 2004, to rise to £57.1m in 2005. CPM rates as low as £1; vendors bullish. ***

London, 16 August 2005: A new report compiled by internet marketing publisher E-consultancy has found that almost...
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