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A Webmaster World thread speculates whether Adsense will become an obsolete business model with the introduction of Pay Per Action ads.
Some members think that it will remain the same:
The reason CPA won't replace CPC is simply because most publishers won't go for it. It's work to hand-select ads and hand-place them on the right pages, and for what? The CPA model is tilted in the advertiser's favor, so there's really no reward for the additional work required of the publisher.
Others disagree:
On the contrary: The rewards can be much greater with CPA than with CPC, if the publisher has traffic that converts. The real question isn't whether CPA works; it's whether there's a benefit to working through a network like Google or Commission Junction instead of dealing directly with the affiliate partners.
Additional discussion, including the impact of Pay Per Action on other affiliate networks, continues on WebmasterWorld and DigitalPoint Forums.
Comments:
Chris Beasley
03/22/2007 06:20 pm
If CPA was going to replace all other display ads it would have done so already. Speculating that it will with Google is just being chicken little. All CPA does is move the fraud from the publisher side to the advertiser side, it doesn't solve anything.
Barry Schwartz
03/22/2007 06:25 pm
Yea, I think Tamar, myself and most others think this won't happen. But it is funny there are two large threads based on this theory. :)
Luis Flores
03/23/2007 09:46 am
The problem in this case will be for publishers to garantee that advertisers give feedback of the customer "actions". This leads to: Advertisters fraud (I believe more difficult to track than click fraud), and also that lots of advertisers will not have the abilities to implement this in their sites. So, I believe Adsense PPC will remain almost unchanged for long time.
Joe
03/24/2007 01:50 am
I think that CPA is the best idea google has come out with. It will definately cut down on click fraud because most competitors will not know what action needs to be accomplished in order to charge someone with a click. I think it's A++++ Great
sunsss.com
03/24/2007 07:52 am
>> All CPA does is move the fraud from the publisher side to the advertiser side >> Advertisters fraud (I believe more difficult to track than click fraud i agree. I think both models should exist together.
James B
03/26/2007 03:12 am
I think I might have been victim of click fraud. I had an Adwords ad up on Google and got like 60 clicks in less than half an hour. I shut down the campaign immediately because 60 clicks in less than a half an hour just don't seem legitimate to me. On top of that, Google shut down my keyword that was originally only 5 cents a click and required me to raise my bid to 50 cents a click and as soon as I did the clicks starting coming almost non-stop. Of course, that my domain was originally www.reviewoogle.com until Google contacted me and asked me not to use that domain name for my custom search engine they were providing me. So, I changed my search engine domain to www.reviewerchoice.com under pressure from officials at Google.