I can guarantee you that no one is going to sign an advertisement contract if they have to pay more solely because the company sold something within that timeframe.
I used to spend a million a year on TV ads without ever knowing if I got a sale from those ads.
If they sold a package “X ads for X dollars depending on proof of conversion.” it might have been something I signed up for. Realistically if they could have done it, they wouldn’t have offered any other option.
“Do you want to run ads? This is our package. You pay $X and if you get sales from those ads you pay $X + $Y because we proved the ads made you money. Take it or leave it. We own 85% of the ad market.”
You pay $X and if you get sales from those ads you pay $X + $Y because we proved the ads made you money.
That’s the problem. In your original scenario the advertising platform isn’t proving ads resulted in sales. They’re showing the ads after the sale occurs.
You said the company would be self-reporting their sales to the advertiser so that they’d have to pay the advertiser more money. But companies often run ad campaigns on multiple platforms and even multiple campaigns on one platform. They’re not going to pay extra multiple times to multiple companies because they made a single sale.
They’re not going to pay extra multiple times to multiple companies because they made a single sale.
The premise is that the package is ads that resulted in a conversion are paid higher. It’s not an individual ad that creates a conversion is singularly billed higher. It’s an ad package where a conversion happened, therefore a higher price for that entire package.
But you can’t know a conversion happened due to a specific ad package unless the customer interacts with an ad from that package.
And platforms can definitely give you detailed enough metrics to know how many conversions happened due to customers interacted with your ads. It’s part of what tracking cookies are for.
And platforms can definitely give you detailed enough metrics to know how many conversions happened due to customers interacted with your ads
Yes that you got a sale and they proved it is why you had to pay more. Every ad doesn’t cause a conversion. But the more ads show can cause more conversions.
I used to spend a million a year on TV ads without ever knowing if I got a sale from those ads.
And did you have to pay extra just because you made a sale in the time span the ad was running?
If they sold a package “X ads for X dollars depending on proof of conversion.” it might have been something I signed up for. Realistically if they could have done it, they wouldn’t have offered any other option.
“Do you want to run ads? This is our package. You pay $X and if you get sales from those ads you pay $X + $Y because we proved the ads made you money. Take it or leave it. We own 85% of the ad market.”
That’s the problem. In your original scenario the advertising platform isn’t proving ads resulted in sales. They’re showing the ads after the sale occurs.
You said the company would be self-reporting their sales to the advertiser so that they’d have to pay the advertiser more money. But companies often run ad campaigns on multiple platforms and even multiple campaigns on one platform. They’re not going to pay extra multiple times to multiple companies because they made a single sale.
The premise is that the package is ads that resulted in a conversion are paid higher. It’s not an individual ad that creates a conversion is singularly billed higher. It’s an ad package where a conversion happened, therefore a higher price for that entire package.
But you can’t know a conversion happened due to a specific ad package unless the customer interacts with an ad from that package.
And platforms can definitely give you detailed enough metrics to know how many conversions happened due to customers interacted with your ads. It’s part of what tracking cookies are for.
Yes that you got a sale and they proved it is why you had to pay more. Every ad doesn’t cause a conversion. But the more ads show can cause more conversions.