Are Pricing Models Changing?

An interesting article in Forbes this week (see link below) raises some interesting questions about how companies allocate capital for marketing functions. 

Adobe Pushes New Pricing Model for Marketing Campaigns

Last week, we wrote at length about the “Great Unknown” that is social media advertising and the shift to digital platforms. Though companies like Facebook are beginning to see return and hard numbers on these new marketing initiatives, much of the data is still coming in. This makes this strategic shift by Adobe all the more interesting. It seems to be a preemptive step, recognizing that CPM models may not be the best pricing model for measuring digital impressions.

How will companies that use Adobe Campaign be affected? And how will this change the conversation in the executive suites about a marketing campaign’s ROI?

This is not a necessarily a new model – other firms in other industries have changed pricing models to fit new economic times. Post-recession, many large law firms offered flat fee or “pay upon project completion” services to attract new clients.

Adobe itself is suggesting its new model will actually broaden its campaign service management and better align clients with relevant customer profiles.

What do you think? Is CPM a viable pricing model for online advertising or does a shift need to be made? What would you do if you were Adobe’s VP of product strategy? Or VP of Marketing for a midsize firm that uses Adobe services?