Research by Wharton professor Ron Berman finds that a “last click” method of compensation is inefficient for advertisers because ads are shown to consumers who would buy the product anyway. Instead, Berman advocates for a compensation metric that rewards “effort” over “performance,” or paying for impressions rather than sales conversions. According to Berman’s research, paying for impressions is more profitable for advertisers than paying sales commissions.
The post Why paying for exposure is more efficient for advertisers than paying for commission on sales appeared first on American Press Institute.
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