Multimedia company ABS-CBN Corp. has rolled out a new pricing model for advertisers in an effort to make the media buying process more precise.
ABS-CBN chairman Eugenio Lopez III said the network is using the cost per individual rating point (CPIRP) pricing model, making it the first TV broadcaster in the country to explore such a pricing model.
“Traditional media buying practice in the Philippines is one where we apply a fixed cost regardless of the program performance,” he said.
CPIRP, which is based on the globally accepted cost per target audience rating point (CTARP) model, allows advertisers to set a budget according to the set rates and how many individuals are reached by their ads.
The model used is similar to websites, wherein the number of unique visitors, their location, what device was used, page views, and time spent on each page can all be measured accurately.
CPIRP rates may vary each day based on the actual number of people reached by a TV show.
“We believe that precise measurement is the new norm in ensuring fairness, transparency, and accountability. You pay for what you get,” Lopez said.
“If we fail to deliver, the advertiser saves his money. But when we hit the top of the chart, everybody wins. The advertiser gets the exposure he desires, the viewer gets to enjoy the shows that give them real delight,” he added.
The pricing model also impels ABS-CBN to hit the highest possible rating points per time slot at all times.
Lopez said the new advertising pricing model is part of ABS-CBN’s focus on innovation, which can be seen in the launching of ABS-CBN TVplus, ABS-CBNmobile, and iWant TV in the last few years.SOURCE