Core technology providers in the advertising industry, including ad servers and dynamic creative platforms, are vital for executing targeted and performance-optimized campaigns. However, the reliance on CPM-based pricing is hindering innovation, making experimentation costly and penalizing efficiency. As brands optimize media buys for performance under this pricing model, their tech vendors charge more for higher impression volumes. This model creates friction in campaign planning and unpredictable costs. The industry should adopt outcome-driven partnerships focused on value creation rather than impression-based charges.
The longstanding reliance on CPM, once foundational to programmatic advertising, has become a misaligned relic in today's complex, outcome-driven environment, where speed, scale and experimentation should be encouraged, not taxed.
If a media team improves performance and manages to serve more impressions for the same budget, it might appear as if they are saving money. But in the grand scheme of things, they're triggering higher bills from ad servers, creative platforms and measurement tools.
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