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Commission Junction Launches Open Marketplace for Pay-for-Performance Advertising
Performance Metrics on Advertisers, Publishers & Ads Respond to the Lack of Accountability in CPM Advertising Model
SANTA BARBARA, Calif. – July 11, 2001 – In a move that makes pay-for-performance advertising truly measurable, Commission Junction (www.cj.com) has begun publishing payment and conversion statistics on all advertisers, publishers and ads in its network. By publishing these metrics, Commission Junction has created the Web's first open marketplace for pay-for-performance advertising, where advertisers and publishers have a visible benchmark of the performance and effectiveness of every ad at converting visitors into revenue.
"We have put significant effort into pioneering the mechanism for providing measurable results to advertisers and publishers using the pay-for-performance model," said Lex Sisney, Commission Junction CEO and co-founder. "These simple, straightforward metrics will have an immediate impact on our client's ability to advertise smarter and acquire more customers. The CPM advertising model just cannot provide this type of accountability."
Creating an open marketplace where cost per action rates are set by market forces, not negotiating skills, lets both advertisers and publishers make informed decisions about advertising partnerships. Both sides can see whether an online ad is succeeding or failing, and access the trends and tools necessary to make intelligent decisions about the purchase and placement of pay-for-performance advertising.
Commission Junction currently serves more than 6 billion impressions per month, ranking it among the largest ad networks in the world, and the only one operating entirely on a pay-for-performance basis.
The primary metric Commission Junction is publishing for advertisers, publishers and individual ads is EPC, the average earnings per onehundred clicks. EPC shows an advertiser'sability to convert visitors to revenue and a publisher's potential success in generating commissions. Additionally, the Network Earnings ranking will show where an advertiser or publisher ranks relative to the network based on the volume of commissions paid or commissions earned, respectively.
In the open marketplace, publishers will be able to quickly search, find and place the most productive ads on their Web site to get the most revenue possible from their audience - eliminating the guesswork previously associated with pay-for-performance advertising. As a result, advertisers will receive more sales and leads on a pay-for-performance basis and have a new tool to measure the true effectiveness of their advertising.
"We have essentially turned on the lights for the online advertising industry," added Sisney. "Advertisers and publishers have been fumbling around in the dark, unsure about fair pricing and measurable results. Now Commission Junction has illuminated the information that allows both sides to make informed decisions. This provides an efficient and effective way for our clients to manage their advertising campaigns, something that had previously been missing in this industry."
About Commission Junction
Commission Junction delivers advanced performance-based online marketing solutions that facilitate strategic relationships between advertisers and publishers, driving accountable results for each client. By publishing performance metrics on advertisers, publishers, and ads within its network and leveraging its own expertise in online marketing through service, education and promotion, Commission Junction creates an open marketplace of low risk and high reward for its clients. The company serves billions of impressions monthly, ranking it among the largest ad networks in the world. Clients include leading online marketers eBay, MSN®, and USA TODAY. Commission Junction is headquartered in Santa Barbara, Calif., with offices in San Francisco, New York and London.
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