Hachette picks CPM model for Web ad rates

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Magazine publisher promising overdelivery to online advertisers

Hachette Filipacchi Magazines hits the street this week with a cost-per-thousand-based pitch that promises free over-delivery of guaranteed page views to advertisers for both its 21-title stable on America Online and its four World Wide Web sites.

The overhaul is one Paul DeBenedictis, president-new media, describes as a "special interest strategy" that takes advantage of Hachette's various niches but also offers single title options.


While Hachette's original plan won business from Nissan Motor Corp. USA and its Infiniti division by selling top-screen banners at $5,000 per month for six months, the new model takes advantage of sites' deeper layers and new content features.

Under the new pricing structure, all sites on AOL and the Web will be priced at $30 per thousand page views, with all over-delivery free to individual marketers each month. Traditional content sponsorships, at $2,000 to $20,000 per month, are still available on a case-by-case basis.

New content features--soon available on all Hachette sites and currently live on its automotive brands like Car & Driver and Road & Track--include an interactive programming guide, buyers' guides that blend research databases, product reviews and links to advertiser Web sites.

"These new areas filter right down to the product," Mr. DeBenedictis said, "but are sought by the user."


Not all media strategies embrace CPMs as a strong model, though in recent weeks America Online has also announced plans revolving around the CPM.

"My concern with CPM-based selling is more of a conceptual one," said Linda McCutcheon, director-ad sales and marketing, Time Inc. New Media. Its Pathfinder Web site sells sponsorships for $30,000 per quarter and guarantees page views. "Do we want to put a valuation model from another media into this one?"

Pathfinder just installed NetGravity as a tool to provide marketers with real-time reports of page views and other data.

With Hachette "we've been pleased by any measurement--theirs, or our own benchmarks. Their sites do extremely well," said Dick Hackenberg, interactive account director at TBWA Chiat/Day, Los Angeles, about client Nissan's interactive advertising. While details of a renewed Nissan deal are still under negotiation, Mr. Hackenberg said the company's brand focus has worked for Nissan.

Copyright March 1996 Crain Communications Inc.

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