Comments on: Pay-Per-Click Ads Are “Indifferent Displays of Advertising” http://publishing2.com/2006/07/13/pay-per-click-ads-are-indifferent-displays-of-advertising/ The (r)Eevolution of Media Tue, 22 Jun 2010 09:23:32 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Scott Karp on the Convergence of Media and Technology http://publishing2.com/2006/07/13/pay-per-click-ads-are-indifferent-displays-of-advertising/comment-page-1/#comment-7482 Scott Karp on the Convergence of Media and Technology Wed, 19 Jul 2006 14:27:36 +0000 http://publishing2.com/2006/07/13/pay-per-click-ads-are-indifferent-displays-of-advertising/#comment-7482 [...] To make the transition from clicks to conversions, Google needs to seize control of the system from end to end, and somehow find a way to control for fraud, which is still very much a risk with cost-per-action (from a comment on one of my recent posts on this issue): What could save PPC value relative to CPA is just how difficult will the CPA model prove to be to implement? How do you monitor the middlemen? How do you monitor the merchants? Would any fraud simply be shifted from adsense publishers and random people clicking to Affiliate marketers and deep pocketed advertisers? [...] [...] To make the transition from clicks to conversions, Google needs to seize control of the system from end to end, and somehow find a way to control for fraud, which is still very much a risk with cost-per-action (from a comment on one of my recent posts on this issue): What could save PPC value relative to CPA is just how difficult will the CPA model prove to be to implement? How do you monitor the middlemen? How do you monitor the merchants? Would any fraud simply be shifted from adsense publishers and random people clicking to Affiliate marketers and deep pocketed advertisers? [...]

]]> By: Brian Wiegand http://publishing2.com/2006/07/13/pay-per-click-ads-are-indifferent-displays-of-advertising/comment-page-1/#comment-7302 Brian Wiegand Sun, 16 Jul 2006 14:50:48 +0000 http://publishing2.com/2006/07/13/pay-per-click-ads-are-indifferent-displays-of-advertising/#comment-7302 Joesph I agree completely with you about the difficulties of implementing a CPA based ad sytem and dealing with the trust issue (which has been called CPA fraud) with merchants participating in the advertising. They clearly would have an incentive to not report transactions which would be a nightmare for the intermediary. This is why at http://www.jellyfish.com we have built a CPA based advertising auction that actually brings another VERY interested and important party into the mix - THE CUSTOMER. We give a customer a share of the CPA advertising. This erases the CPA fraud issue because There are 3 parties involved that all need to get their share of the transaction. If a merchant doesn't report a transaction we would have a very angry customer that would let us know immediately This eliminates the CPA fraud issues altogether and actually drives some additional value to the consumer who arguably deserves more for their attention and participation with advertising. Joesph

I agree completely with you about the difficulties of implementing a CPA based ad sytem and dealing with the trust issue (which has been called CPA fraud) with merchants participating in the advertising. They clearly would have an incentive to not report transactions which would be a nightmare for the intermediary. This is why at http://www.jellyfish.com we have built a CPA based advertising auction that actually brings another VERY interested and important party into the mix – THE CUSTOMER. We give a customer a share of the CPA advertising. This erases the CPA fraud issue because There are 3 parties involved that all need to get their share of the transaction. If a merchant doesn’t report a transaction we would have a very angry customer that would let us know immediately This eliminates the CPA fraud issues altogether and actually drives some additional value to the consumer who arguably deserves more for their attention and participation with advertising.

]]> By: Joseph http://publishing2.com/2006/07/13/pay-per-click-ads-are-indifferent-displays-of-advertising/comment-page-1/#comment-7192 Joseph Fri, 14 Jul 2006 17:15:07 +0000 http://publishing2.com/2006/07/13/pay-per-click-ads-are-indifferent-displays-of-advertising/#comment-7192 What could save PPC value relative to CPA is just how difficult will the CPA model prove to be to implement? How do you monitor the middlemen? How do you monitor the merchants? Would any fraud simply be shifted from adsense publishers and random people clicking to Affiliate marketers and deep pocketed advertisers? There is a very interesting take on this here: http://plentyoffish.wordpress.com What could save PPC value relative to CPA is just how difficult will the CPA model prove to be to implement? How do you monitor the middlemen? How do you monitor the merchants? Would any fraud simply be shifted from adsense publishers and random people clicking to Affiliate marketers and deep pocketed advertisers? There is a very interesting take on this here: http://plentyoffish.wordpress.com

]]> By: Max Kalehoff http://publishing2.com/2006/07/13/pay-per-click-ads-are-indifferent-displays-of-advertising/comment-page-1/#comment-7180 Max Kalehoff Fri, 14 Jul 2006 11:31:50 +0000 http://publishing2.com/2006/07/13/pay-per-click-ads-are-indifferent-displays-of-advertising/#comment-7180 Great questions. But cost-per-action as a solution presumes that there is no value in wide dispersion of adwords and adsense as a ubiquitous branding or spamming vehicle. Without a doubt, search falls more into the camp of direct response, not branding or reach. But if CPA becomes the model, then what is the barrier to overloading the inventory of adwords and adsense with an aggregation of exposure that could be worth something. That must be deal with in such a model. Great questions. But cost-per-action as a solution presumes that there is no value in wide dispersion of adwords and adsense as a ubiquitous branding or spamming vehicle. Without a doubt, search falls more into the camp of direct response, not branding or reach. But if CPA becomes the model, then what is the barrier to overloading the inventory of adwords and adsense with an aggregation of exposure that could be worth something. That must be deal with in such a model.

]]> By: The Paradigm Shift http://publishing2.com/2006/07/13/pay-per-click-ads-are-indifferent-displays-of-advertising/comment-page-1/#comment-7172 The Paradigm Shift Fri, 14 Jul 2006 07:15:06 +0000 http://publishing2.com/2006/07/13/pay-per-click-ads-are-indifferent-displays-of-advertising/#comment-7172 <strong>If you Pay Per Click is bad, then CPA is a Nightmare...</strong> Yet another articleout today calling CPA the Savior of  google because Pay per click is bad.    It is mildly amusing that everyone who writes these articles has no actual experience as an advertiser/publisher. My biggest concern these days when do...... If you Pay Per Click is bad, then CPA is a Nightmare…

Yet another articleout today calling CPA the Savior of  google because Pay per click is bad.    It is mildly amusing that everyone who writes these articles has no actual experience as an advertiser/publisher.
My biggest concern these days when do……

]]> By: Joseph http://publishing2.com/2006/07/13/pay-per-click-ads-are-indifferent-displays-of-advertising/comment-page-1/#comment-7166 Joseph Fri, 14 Jul 2006 02:02:44 +0000 http://publishing2.com/2006/07/13/pay-per-click-ads-are-indifferent-displays-of-advertising/#comment-7166 You pose a great question in "How does Google get advertisers to value cost-per-action without fundamentally devaluing cost-per-click?" And I would say the answer is it can't be done. Cost per click has been fundamentally overvalued for some time anyway because there have been no other viable alternatives. The value for cost per click will inevitably decline as cost per action models become more readily available. This will become even more true when there is an inevitable downturn in the overall economy. But the days of being able to charge high prices for cost per click are rapidly coming to an end. And since Google is now moving into somewhat new territory they will likely be more vulnerable to innovative competitors. I would say that Google is about to enter a period of "interesting times" in the Chinese curse sense of the phrase. You pose a great question in “How does Google get advertisers to value cost-per-action without fundamentally devaluing cost-per-click?” And I would say the answer is it can’t be done. Cost per click has been fundamentally overvalued for some time anyway because there have been no other viable alternatives. The value for cost per click will inevitably decline as cost per action models become more readily available. This will become even more true when there is an inevitable downturn in the overall economy. But the days of being able to charge high prices for cost per click are rapidly coming to an end. And since Google is now moving into somewhat new territory they will likely be more vulnerable to innovative competitors. I would say that Google is about to enter a period of “interesting times” in the Chinese curse sense of the phrase.

]]> By: Pay Per Click Advertising Information, News and Headlines http://publishing2.com/2006/07/13/pay-per-click-ads-are-indifferent-displays-of-advertising/comment-page-1/#comment-9109 Pay Per Click Advertising Information, News and Headlines Thu, 01 Jan 1970 00:00:00 +0000 http://publishing2.com/2006/07/13/pay-per-click-ads-are-indifferent-displays-of-advertising/#comment-9109 <!--%kramer-pre%-->action: buys a product, fills out a survey, whatever. It’s a hard model to make work — Google would become more of a partner in the final sale instead of an indifferent displayer of advertising — but it’s the right security response to click...Read more at http://publishing2.com/... <!--%kramer-post%--> action: buys a product, fills out a survey, whatever. It’s a hard model to make work — Google would become more of a partner in the final sale instead of an indifferent displayer of advertising — but it’s the right security response to click…Read more at http://publishing2.com/...

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