Earlier today, one of CNET News.com's blogs posted an interview with John Battelle, founder of Federated Media Publishing.

The industry is really good at direct response advertising online ... which is sub $5 cost per thousand (CPM) for an ad.

We want it at the kinds of CPMs that supported the magazine and the cable industry, which is above $20, $30, $40, $50 cost per thousand.

Here's how:

I just don't think at the end of the day you can get the brand awareness and brand engagement using algorithms, putting (Interactive Advertising Bureau) banners next to content. You can get part of the way there. To get all the way there you have to have the kind of ecosystem that was the magazine business at the height of its expression, where you can really get into that and do some cool things working with the publisher, like (the equivalent of) a two-page advertising spread online.

For more background on Battelle's views, see his March 16 post, e.g.

While technology and ad platforms are essential components of digital marketing's future, they fail to address the core needs of brand marketers: engagement. And they fail to address the core needs of digital publishers: the support of marketers that allow them to make a decent living.

Michael Arrington of TechCrunch noticed that Battelle talked about investing in some of the sites that Federated Media represents.

Here’s what I think he really means: They’ll either buy sites outright, or guarantee revenue, or guarantee revenue in exchange for equity. A publisher wouldn’t consider Federated Media an attractive investor versus venture capitalists simply because it would mean tying their revenue to them over the long term.