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Fatboy Slim trials performance based advertising model

Record label Southern Fried is advertising Fatboy Slim's new band, The Brighton Port Authority (The BPA), with a performance-based banner ad campaign that defers the risk to its advertising agency.

Launching in the UK next week, the campaign will be judged on how many times people rollover the banners to watch the promotional video for The BPA's single He's Frank featuring Iggy Pop.  The agency, Silence, believes that its cost-per-engagement (CPE) format, which sees advertisers pay only for results, reflects the importance of performance-based models to advertisers this year.

The most common way for advertisers to approach banner advertising is to buy inventory upfront from a publisher by the thousand page views, the cost-per-thousand (CPM) model.  Silence is bringing the accountability and targeting of search engine marketing (SEM) to display advertising online by only paying publishers when people rollover ads they are serving.

Katy Ellis from Southern Fried, said, "Like never before we have to focus on marketing that offers proven returns on investment. Silence combine the creativity we require from an agency with an irresistible media plan - if people don't engage with our ads, we don't pay."

The founder of Silence is Lee Henshaw, the internet entrepreneur who launched the UK's first online PR company, Way to Blue, in the mid-90's.  He said, "Silence is hooked on a prophecy: that online advertisers will only pay agencies and publishers for display advertising campaigns that work. That's their experience with search engine marketing, so why should banner advertising be any different?"

Kieron Matthews at the Internet Advertising Bureau believes this shift to performance based online display advertising will need to be embraced quickly by online publishers.

Matthews said, "Advertisers recognise that measurability is online's strength, and that's encouraging them to ask for performance related inventory from publishers. This  is a challenging time for everybody, publishers included, and it's likely they'll react to this approach by embracing it rather than risk being left out."

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