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View Poll Results: Which would you prefer?
Pay Per Click (PPC)- Current model 1 50.00%
Pay Per Action (PPA) -Proposed Model 1 50.00%
Voters: 2. You may not vote on this poll (are you registered and logged in?)

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Old 04-29-2006, 10:01 PM   #1 (permalink)
Noogle
 
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midas
Pay Per Action(PPA) compared to PPC model

Hi
I read about the possible change to Pay Per Action (i.e. completed sale or action by customer) to replace PPC mentioned in this article.
http://www.inc.com/magazine/20060301/handson-technology.html

It
mentions that average price of PPC Google keyword now is $1.95 while average price per call/ action (according to Ingenio) is $5.50. So obviously, publishers will get paid more on PPA compared to PPC.
IMHO, it will cut out click fraud and in a way cut down competition amongst genuine publishers.
The bar and standard of content will be raised much higher so I thinkaverage income of publishers may drop but the top guys who are already doing well in Adsense should continue to do well.

Anyone care to commenton how this will impactAdsense publishers.

Thanks.



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Old 04-30-2006, 04:29 AM   #2 (permalink)
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zsk_00
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PEM[Instead of buying clicks of uncertain value, will pay only when an ad results in a phone inquiry--or, in some cases, an actual sale.]/EMThis might sound good but only if the advertiser is honest!. A startup/small company who does not have much budget for marketing, might report only 10% of their sales which were generated by clicks! As the publisher's available cash goes down, to survive, they will resort to this kind of behaviour more and more.

EM[between 20 and 50 percent of clicks are estimated to be made by people who have no intention of buying--and many are outright fraudulent]/EM
This part is considered by advertisers when they bid for adwords anyway. If you think that only 50% of the clicks are going to lead for calls/sales, then you bid less for it.You pay for what its worth.


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