IAB claims the vendor's decision to drop CPM pricing for a new model based on customer profiles indicates the shift from quantity to quality in the new data-driven marketing era
Adobe’s decision to move away from CPM (cost per thousand emails sent) campaign pricing to one based on customer profiles is indicative of the rising importance of value-based metrics in marketing, according to one industry group.
Adobe will introduce a new pricing structure for its Campaign email management platform from January that see costs based on customer profiles instead of the more traditionally dominant CPM model. Adobe MD for Australia and New Zealand, Paul Robson, claimed the new model will enable marketers to better rollout cross-channel campaigns with a single solution to support all of their needs.
“Marketers are being held back by CPM. It places the email vendor, rather than the marketer and their customers, at the centre of campaign operations,” he said. “Adobe’s pricing structure for Adobe Campaign sets a new precedent in the industry and helps marketers to experiment and engage with their customers across all channels. It provides full transparency for marketers and ultimately a better, more relevant experience for the consumers they reach.”
Adobe Campaign was launched in September following the acquisition and integration of Neolane.
Interactive Advertising Bureau (IAB) CEO, Alice Manners, welcomed the new cost model and said it reflected the ongoing trend towards value-based marketing metrics.
“Email marketing is in decline and from a revenue point of view, has been declining for some time,” she said. “We do need to look at it, and Adobe is taking the next step by reassessing the CPM model.”
According to the September IAB Online Advertising Expenditure Report, produced by PwC, email display advertising continues to trend downwards. Email advertising expenditure fell to a record quarterly low of $2.1m during the quarter, a drop of 52 per cent compared to the previous June quarter and 63 per cent year-on-year.
While CPM was still noted as the primary pricing mechanism being used, the PwC report signalled that direct response is gaining traction, and accounted for 42.2 per cent of total advertising pricing during the quarter. The report attributed this to Google and Facebook gaining a greater foothold in the overall general display market.
“CPM is based on the more you send out, the better response you expect to get. Now, the focus is increasingly on quality over quantity,” Manners told CMO. “For the IAB, it has been an interesting year seeing how marketing performance is measured and the changing ways campaign activities are priced.
Read more: More marketing emails reaching Australian inboxes
“Everyone is looking at their pricing models right now and making them more accountable. CPM is something we used traditionally when looking at [email marketing] activities but now that we have so much data, it’s accountability and performance that are the key areas for marketers. We’re looking to show that value, and pricing should be reflecting that as well.
“There is a lot of value in email marketing – seeing that decline in revenue, we need to be looking to how we measure effectiveness.”
Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia
In 1976 Apple launched. The business would go on to change the game, setting the bar for customer experience (CX). Seamless customer experience and intuitive designs gave customers exactly what they wanted, making other service experiences pale in comparison.
Many business and marketing managers progressing to leadership positions face evolving their focus from operational matters to strategic decision making and planning.
We have expected artificial intelligence (AI) will become part of our everyday lives for quite some time.
In this bonus last episode of this new podcast series, BrandHook MD, Pip Stocks, talks with former ANZ group general manager of marketing, Louise Eyres, talks about the importance of thinking like a customer and using intuition to solve customer painpoints.
Just printed out this Brad Howarth screed to read tomorrow. I need a good laugh once in a while. Or maybe shed some manly-man tears at th...
Larry A Singleton
What a diversity agenda has done for Kellogg's staff and innovation engagement
Morons. PC Nazis infiltrating and subverting every level in our lives.These scum have destroyed our education system.Read FrontPage Magaz...
Larry A Singleton
What a diversity agenda has done for Kellogg's staff and innovation engagement
It is an accepted fact that in the present times the mass makes use of digital marketing more often and are more and more enlightened wit...
Digital Marketing Course in Ja
Why RMIT is partnering with Adobe for digital marketing learning
If men were really the dominating brutes that feminist make them out to be ,then women really would be second class citizens. Without th...
aaron
Analysis: Gillette's latest ad only proves why brands standing for positive change is vital
In 2019 Augmented Reality plays a vital role in marketing campaign its new way to engaged user with digital content. Try Augmented Realit...
hill william
Predictions: 9 digital marketing trends for 2019