Financial Times – Going Above and Beyond CPM

Financial Times Abandons CPMAs the business models for Internet advertising continue to evolve, one of the World’s leading print companies is offering an alternative to CPM – the long time leader in all advertising rate calculation.

 The Financial Times recently announced that in addition to CPM, it will sell display ads based on the time its audience spends with content – call it engagement time. The British newspaper hopes this solves one of the key viewing problems that plague the advertising industry. They are also hoping it will more properly value its readership, which deeply engages with its business content. Its data says the average Financial Times reader spends more time with its content than other Internet readers. Six times more than other business readers.

The media company is seeking to tie brand value and compensation more closely together, and desire to monetize its quality. “Quality comes with great service, great ideas and an appropriate currency,” said Jon Slade, commercial director of digital advertising for The Financial Times

The decision was driven by conversations with agencies and advertisers who want quality, and are looking to sites that can deliver quality engagement. And if readers spend more time on the content, chances are they will notice the advertisers.

Slade is empowering his salespeople to say, ‘We have 30,000 hours of CEO time on The Financial Times, how much do you want for your conversation?’

I think they may be on to something here. Engagement is worth a lot more than a quick glance, especially in the days of multi-screens where people are web surfing and watching TV at the same time. If you can attract a first class audience, you should be able to charge more for their attention that quick glances of lesser qualified buyers.

What do you think?

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