Online Sales Success

John Battelle’s Searchblog: Sell Side Advertising: A New Model?: "A while ago I read Ross Mayfield’s post on ‘Cost Per Influence’ advertising and thought to myself ‘That feels important, but I don’t get it.’ Something was missing, or, put another way, I was missing something. So I gave Ross a call last week and we hashed through it. What I realized during our talk was that the premise for how he got to the idea of CPI was, to my mind, far more interesting than CPI itself, at least in the near term. Allow me to explain. Ross’s musings on CPI turn on the concept of ‘transitive advertising’ – a very interesting idea that flips current advertising models upside down. In essence, this new model for online ads reverses the relationship between publishers and advertisers. In traditional advertising models, the advertiser holds all the cards. They decide what they want to spend, and most importantly, where they want to spend it. But the rise of pay-for-performance networks like Overture and AdWords/AdSense has changed this relationship in significant ways. First, advertisers are only paying when their ad performs – this alone is a huge shift in media. But as I’ve pointed out repeatedly, these networks also disaggregate advertisers from publishers. The advertisers are no longer choosing the publisher with whom they are doing business, they are instead choosing keywords, concepts, context. OK, but not very good for publishers nor for audiences, in my opinion. But here’s the heart of Ross’s transitive advertising model, or what I’d like to call Sell Side Advertising. Instead of advertisers buying either PPC networks or specific publishers/sites, they simply release their ads to the net, perhaps on specified servers where they can easily be found, or on their own sites, and/or through seed buys on one or two exemplar sites. "

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