Winstar Nixes CPA Campaigns

Interep Interactive, a network of online ad representation companies, will no longer accept cost-per-action campaigns beginning Oct. 6. Interep companies include Winstar Interactive Media and Cybereps.

According to John Durham, president and COO at Winstar Interactive Media, CPA deals hurt clients. “This is not advertising, this is outright thievery,” Durham said in a statement. The exceptions to the refusal of CPA deals are campaigns that include a minimum cash guarantee.

Cost-per-action campaigns, which had gained popularity among some advertisers and increasing criticism from publishers, are online ad campaigns where the booking agency or client prefers to pay the Web site (and its rep firm) only if Web visitors click on a creative unit or take an action desired by the advertisers.

CPM pricing, however, continues to be the model of choice among most online advertisers and publishers, comprising 50 percent of all deals, according to the Interactive Advertising Bureau (IAB), an industry association in New York.