I’ve been helping customers of all sizes acquire new customers, prospects, sales, etc. in almost every online & offline medium available. One of my favorite mediums for customer acquisition is email marketing. Email marketing gives a marketer a 1-to-1 interaction w/ a digital subscriber – something almost no other online medium offers. It gives you some solid real estate too – sometimes your message simply won’t fit in a banner or newsletter sponsorship.
Traditional media pricing has been done a CPM (Cost Per Thousand) basis. Same’s been true for interactive media as well. W/ that CPM model, an advertiser agrees to pay X amount for reaching X amount of people/impressions. The CPM is supposed to be priced @ a point that makes the dynamic work for both the advertiser and the publisher. Unfortunately, that doesn’t always happen. The advertiser shares the burden or risk b/c the publisher gets paid regardless of performance.
The other end of the pricing spectrum is CPA (Cost Per Action). In this scenario, the advertiser pays the publisher only when a transaction takes place. That transaction can be defined as a new customer sign-up, social media registration, product sales, etc. Advertisers love CPA deals b/c there is no risk to them; publishers tend to dislike b/c they don’t have much say in the creative process. They merely have to accept the advertiser’s terms & work w/ their creative solution.
The common middle of the road pricing for email marketing is typically CPC (Cost Per Click). It’s a shared risk model – it behooves everyone to work towards a common mutual goal. Both the advertiser & the publisher have skin in the game. But even w/ this model, there’s still one element that works to the publisher’s disadvantage – creative control. Publishers can’t develop the subject line & creative – they have to rely on the advertiser exclusively for that.
I’d like to recommend a truly balanced solution for the advertiser & publisher – CPO (Cost Per Open). This is a shared risk model, very similar to the to CPC model, but there’s one enormous difference. The onus of strong creative rests squarely on the shoulders of the advertiser – exactly the way it’s supposed to be! I’ve often joked w/ my clients that it’s … “My job to bring the prospects to the party. It’s your job to make them dance!” It’s a cheesy analogy, but when you think about it, it’s an incredibly relevant parallel. Acquisition marketing is about bringing the right audience to the advertiser. It’s the advertiser’s responsibility to convey their message in a strategic manner – i.e. make’em dance. The publisher has a lot of skin in the game as well – if they don’t generate quality subscribers – they won’t generate as much revenue as they could. The more qualified the publisher’s subscriber-base, the better the chance of success for everyone!
If you’re an advertiser and are looking for help finding new customers, I’d be happy to put together a comprehensive email acquisition marketing strategy @ no cost @ all. If you’re a publisher looking for new ways to maximize data monetization, feel free to look me up for a a recommendation on how to generate more revenue. I work for both sides of the coin b/c I don’t see them as being competitive – I seem them as being complimentary. Balanced success for both parties leads to more revenue opportunities collectively!