Thursday, 24 September 2009

CPCC: A Viable New ROI Metric Label?

Comment on article by Mark Sherman of Media Experts on  Link: "Cost Per Maybe?" in which he suggests it is now time to toss out CPM and introduce CPCC: Cost Per Consumer Contact.

Wow! Mark, for a "legacy" media guy (and "legacy" folks tend to cling to what they know and thus are comfortable with) this is fairly heretical!  What you are talking about is really what will save the media planning/buying business.  It might even save the ad agency business! 

What everyone is beginning to see is that the future of marketing (now that they've told us they never liked or wanted 'push marketing' with it's non-stop repetition of the same messages), is going to be about what works best with people: 'one-on-one engagement'.  People want to buy brands and are interested in brand information, they just don't want to hear a brands TV/radio ad more than once.  If we can communicate it directly, face-to-face (experiential marketing - XM), they might just become brand loyal for a long time.

What that suggests is that, regardless of whether their first 'brand experience' comes through a video seen via TV, the Internet or a mobile phone, or through a blog post, or a friend's reco at their house, etc., what is crucially important is that "Cost per Consumer Contact", as you've called it.  This is a game-changer.  It is the ROI that the XM segment has been searching for over the past decade.

The point is that, once you accept a shift away from the comfort of the GRP and realize that Frequency is now dead (not reminder messages, just NOT the same :30 ad being repeated to the same people ad infinitum), you open up the industry's minds to the notion that a CPCC might be 100 times higher than a CPM, but also might be 1,000 times more effective.  That's a very insightful (and radical!) point.

The number one priority in increasing the shift of "push marketing" ATL dollars to the far more "pull marketing" type of experiential efforts through XM (versus the "push marketing" style shift we're now seeing to digital and mobile), is establishing a guideline for a new kind of ROI metrics.  The CPCC is something that crosses over from XM to all media and could become a universal measure.  I like it!

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