Mary Meeker’s of Morgan Stanley gave a presentation earlier this week in New York at the CM Summit and seems to have dazzled the audience with lots of interesting facts and figures about the Internet.
On this slide she compares average CPM across different mediums and supports her view that the golden age of online advertising is finally coming to fruition because, among other things, it’s such a bargain price. In a previous slide she showed how advertisers aren’t spending as much money online commensurate with the amount of time consumers are spending online, like a $50 billion shortfall.
One the reasons advertisers aren’t online as much as they should be is with such a low CPM it’s difficult for traditional agencies to make money on such low dollar spends. It’s hard to justify 10 hours of planning to spend $100 online, not matter how effective that $100 spend is. And, forget the commission model because that really doesn’t work online.
The challenge for a brand manager is to force your agencies to move unproductive traditional advertising dollars to the much more productive online opportunities. If the agency can’t do it, it’s time to get another agency.
“Nothing can withstand the force of an idea whose time has come.” The Internet is one such idea.