David Berkowitz, via Mediapost’s Social Media Insider blog, today proposed a new way of pricing social media interactions – the CPSA “Cost per Social Action”.
David argues that social marketing when done correctly isn’t about “clicks”, and is certainly not about conversions, but is about building relationships.
I think David is right on.
Cost per Impression (CPM), Cost per Click (CPC), Cost per Action (CPA), and Cost per Engagement (CPE) doesn’t really cut it for social actions.
The main question really is – how much is a social action worth – does it vary by action (sharing, posting or liking?) or by participant? (500 vs 10,000 followers).
…I’ll throw out a fifth model: Cost Per Social Action (CPSA). It’s for any action with a distinctly social quality that leads to either new relationships (such as through “viral” referrals or acquiring new followers and fans) or deepening existing relationships (such as through “likes,” comments, responses, and ratings).
He readily admits maybe we’ve got too many pricing models going on already and the industry doesn’t want another to learn, deal with, whatever.
He lists some pros and cons, and wants to know what you think.
Read the full post and comments here: http://bit.ly/e74SG