Population Statistic: Read. React. Repeat.
Wednesday, March 21, 2021

ready for action
Google ushered in the cost-per-click (CPC) model as the Web advertising standard; the Internet company’s multi-billion dollar valuation is based on that position.

Now that click fraud is poisoning the well and prompting calls for auditing, Google is getting ready to show CPC the door. A cost-per-action (CPA) model, mirroring affiliate networking fees, will tie advertiser payouts to more substantive user activity — online purchase, downloading a file, completing a contact form — than a simple clickthru.

For the time being, Google is not putting cost-per-action ads next to search results, limiting them to publishers’ Web sites and essentially creating its own affiliate marketing network. Industry insiders said Google’s entry into the market was likely to accelerate its growth.

There’s no question — with Google being the 800-pound gorilla in the online advertising biz, its adoption of cost-per-action will establish a new default in the industry. It’s only a matter of time before AdSense is fully switched over from CPC to CPA.

That being the case, I wonder about the impact to all those publisher sites that rely on AdSense for their revenue. CPA, by its nature, will net far less money than CPC. Google can devise a new payment structure, but it’s not going to go broke just to accommodate millions of publishers.

by Costa Tsiokos, Wed 03/21/2007 10:57 PM
Category: Advert./Mktg., Internet
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I’m not familiar enough with Nescafé’s usual advertising strategies to know if the above Web banner is typical of their messaging. I came across it on a food industry website earlier today, and if you pay attention, the ad copy speaks to coffee-drink retailers instead of customers:

Specialty coffee drinkers are always willing. But it’s up to you to make the first move. Drink Up — Nescafé

Naturally, the opening frame shot of that busty model, sporting a t-shirt reading “If it’s available, so am I”, grabs the eyeballs. I guess the average cafe owner is a breast man?

Of course, I hate coffee. But I did like this ad enough to post about it.

by Costa Tsiokos, Wed 03/21/2007 09:50 PM
Category: Advert./Mktg., Food, Internet
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