P&G wants a new payment model

In the past decade, the Internet advertising market has become so powerful. MarketingWeek reports about the importance of the online advertising, so as we all know, the amount of money is flowing into the Internet advertisement. However, the article points out the importance of “massive success of search” that “still accounts for two-thirds of online advertising spend” and strengthen the channels that magnetize most of them.

Since its convenience of containing and formulating information of financial services or products, the online advertising is so attractive to corporations. Therefore, measuring engagement is a big issue. Companies have been measured the engagement of products or services by simple CPM deals or click-through rate.

However, Procter & Gamble had a briefing with media owners about a new payment model: beyond just seeing advertisement or sign up for e-newsletters. For instance, companies pay as consumers watch videos and play games. Online publishers and media agencies responded differently. They worry about the definition of success in advertising because of utilizing their own metric rather than using the apparent click measurement.

Now, the dependency on the Internet in the society has grown tremendously. It truly becomes a part of our lives. The online advertising has been growing fast so far and it will take most of the pie in few decades unless a better device emerges. Therefore, as P&G points out, a new model payment for online ads is inescapable to be more efficient to charge ad payments.