Here’s One Way to Improve Digital Advertising: Charge Less to Run Good Ads
Key Takeaways from this article
In media, the interest on borrowed attention is priced simply on the size of the loan: the number of impressions bought, the length of a video ad or the dimensions of a banner.
In media risk can be quantified as the quality and relevance of an ad.
In the environments such as skippable video, feed-based ads and large in-line formats, the time a reader chooses to spend with an ad is a direct indication of its quality.
The beauty of integrating quality into the price of media is that it creates an economic incentive for better advertising.
Publishers that adopt risk-based pricing models will attract higher quality advertisers.