Charging for Response Not Circulation
Dai Nippon Printing Company of Japan is preparing to launch a new response driven advertising service for marketers. Under the new service Dai Nippon's magazine properties will begin allowing advertisers to pay a fee to the publisher based solely on each sale their ads generate. The program allows readers to use their mobile phones to scan a bar code found on the ad, which then in turn takes the reader directly to the advertiser's direct response (see article below) web page for the featured product. At this time it is unclear whether Dai Nippon is also providing the web page hosting service. However, for revenue tracking purposes it would seem likely. In the United States marketers tested bar coding advertisements under the now defunct "Cue Cat" system. Though the idea had merit, the system quickly failed for a variety of reasons ranging from technology to legal issues. Using technology capable mobile phones will make the success of this venture more likely and if it works there will undoubtedly be a lot of advertisers taking notice.
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