During 2005 we encountered a lot of demand from advertisers, publishers and agencies for new ways to place, run and pay for online advertising campaigns. There was a lot of interest in “cost per click” (CPC), “cost per lead” (CPA) and “cost per sale” (CPS) models.

This demand has been stimulated by overseas trends that now sees these forms of ad payment set to out strip the more traditional CPM rate card. Of course much of the CPC market is being driven by Google, Yahoo and MSN Search.

The Performance Network is not about replacing CPM or “by the week” campaigns as we see this market continuing to grow strongly. However there are an increasing number of advertisers now familiar with CPC and non traditional creative (text ads, XML feeds) and these advertisers are keen to expand their online advertising activity.

The Performance Network is therefore aiming to grow online advertising spend by offering advertisers new options in terms of creative and payment structures. The Performance Network will be a new and complementary option along side traditional “by the week” display campaigns.

There are also major advantages for publishers looking to increase their website and webpage yield by integrating new ad formats and advertorial content as well as product feeds. These new ad formats will add additional revenue streams and content while enhancing the usefulness of the site to the end user.

As publishers can pull campaigns whenever they wish and run them in any location and for any period of time occupancy rates are always 100%.