Microsoft Proposes New Ad “Engagement” Measuring Method
Instead of only paying advertisers on a pay-per-click basis, Microsoft is proposing a new method of measuring the effectiveness of ads. Instead of per click, Microsoft will find a way to measure the “engagement” of an ad based on whether or not the user responds down the road to it.
Here’s how it works: if you see an ad for Netflix while you’re reading the New York Times, but don’t click on it immediately, the Times can still get paid for that ad down the road if the user eventually clicks on a Netflix ad. Microsoft will measure how many times you’ve seen the ad, and then reward the first or second server of that ad for an eventual click.
Erick Schonfeld of TechCrunch suggests this may merely be away to explain away poor performance of ads by attaching a new standard of success to them. This justification of underperformance will give ad servers a new excuse to use when the per-click model doesn’t pan out.
Essentially, as Schonfeld goes on to say, it will either work or it won’t work. People will go with Microsoft if advertising with them gets results, and if it doesn’t get results, they’ll go to Google or elsewhere. Sounds about right to me.
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