A study by JPMorgan says performance-based advertising is replacing the CPM-based model. Looking at the United Kingdom, which spends more ad dollars online, about 15 perent, than the US, about 8 percent, the reports says about 85 percent of online ad spending is with performance-based models.
JPMorgan doesn’t view online video ads as the answer in the near future. (Though some think differently) . Its belief is that performance-based marketers who want a measurable ROI have been alienated by the CPM model. It also says even brand advertisers are wary because of the inability to guarantee viewership for a specific video.
But with the recession claiming brick and mortar victims, the research group believes that online retailers could find it easier to win and keep marketplace shares in a less competitive field.
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