Procter & Gamble is to ditch traditional CRM and CTR ad payment models in favour of a new ‘cost-per-engagement’ scheme. The move will see publishers that run ads for the FMCG giant’s brands, paid depending on specific metrics used to measure their engagement with the advert.
For example, a metric would be used to measure consumers who sign up for newsletters or watch videos after the initial ad impression.
The move to set a radical new precident in online advertising, as P&G is the world’s number one advertisier, with household brands including Braun, Gillette, Crest, Duracell, Pampers, Pringles and Oral-B.
Procter & Gamble spent £2.2m on online advertising for the year to July 2009, according to The Nielsen Company. It’s the UK’s second biggest advertiser, behind the COI, with £176.2m spent in total during the first ten months of 2008.