May 22, 2009
The result is more than the sum of its parts (at least for CPA and CPC)
Posted by: aarrieta In: Marketing Online
One of the many suprises that I’ve had at my stay in Harvard Business School, was to find this paper where with an academic aproach, they reached a conclusion about something learned in practice, but the real surprise was to find people like this making the same questions from an academic point of view.
This paper explains why an adnetwork that runs CPC campaigns as well as CPA campaings has a more efficient model (more eCPM) than if running only on CPA or only on CPC, assesing the incentives that advertisers that usually run campaings on CPA, but that they also know that if they really perfrom well in some inventories they can pay less on CPC. If you are really interested on this topic, you will finde this paper fascinating and unique and if you are the remaining 99.99% you will find this to be weird.
I got together with Ben the paper’s author, who is a teacher at HBS and we shared many points of views and many problems to being taken care of. In the end the process was very productive and promising at the same time.
