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February 22, 2008

Ultramercial: We Do Engagement Pricing Too!

In the wake of our coverage of VideoEgg's new "per engagement" pricing strategy, I heard from an old school engagement player: Ultramercial.

In an e-mail, company rep Lori Jones pointed out that every person who sees Ultramercial's "Day Pass" interstitial unit "engages" with the ad, and she indicated it charges CPMs of $50 and up for its publishers.

"If the 75 cents cost-per-engagement quoted by VideoEgg is accurate they’re going to do very well," she wrote. "As a comparison, Ultramercial charges our advertisers on a CPM basis for our full-screen premium access ad. This works out to be about 5 cents to 25 cents per engagement, which lasts on average 50 seconds."

For the uninitiated, Ultramercial's trademarked unit lets publishers like Salon and TheStreet offer ordinarily paid content for free by requiring site visitors to click through the ad experience. Just a reminder that some ad formats are inherently sold on engagement.

Posted by Zachary Rodgers at February 22, 2008 8:54 AM

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