SQAD Declares CPM The Preferred Online Ad Metric
February 24, 2009: Influential media forecaster SQAD has chosen CPM as its preferred metric for online advertising, MediaPost reports, as part of a larger move to standardize metrics across major media led by the American Association of Advertising Agencies.
SQAD has been working on a new WebCosts service to aggregate and report online pricing, with CPM as the standard; as SQAD CEO Neil Klar tells MediaPost, "Since there is currently no industry-standard equivalent to cost-per-point in the web display space, we elected to focus on CPM in the initial WebCosts release." But the online industry's favored cost-per-action or cost-per-click metrics could also be adopted at a later date, he said.
Additionally, TV is moving to a CPM model and away from CPP, and a focus on CPM in online metrics will bring measurement in the fast-growing area of online video advertising in line with TV ads.
Read the MediaPost story here.