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Friday, June 30, 2006

CPA the Real Reason for Google Checkout?

Om Malik posits that a key driver of Google's rollout of Checkout is that the company will accelerate its move into cost-per-action advertising, as opposed to cost-per-click. Anything's possible.

I'd expect them to roll CPA out as a parallel program in some way, though, rather than making it integral to the operation. Another recent Google AdWords development has been another facelift to the detailed reporting in the interface. They've added new tabs to allow users to access more information without cluttering the interface, and presumably, keeping page load times short and allowing advertisers to customize their UI experience to their preferred approach. It doesn't *look* like there's any imminent switchover to CPA -- indeed, it looks like Google is hunkering down to solidify and strengthen the core CPC model (albeit with significant modifications and enhancements) they've been working with since February 2002. AdWords is still arguably on version 2.5, and I don't expect them to get up to 6.0 anytime soon. :) Think about it. Through all the product announcements, Google Earth, China, and other noise, Google still makes money in one basic way, and they know it -- and continue to place their bets on it.

In a flurry of what-looks-like-rapid-change, Google's summer blockbuster this year would be surprisingly titled: The Constant Hedgehog.

On that note: in the past couple of months, we've said a lot of what needs to be said in this space. Sometimes, probably too much. :)

I'm taking off for the Canada Day long weekend today, and many of you will be taking a long weekend for the 4th of July. Enjoy! It's time for Traffick to take a bit of a hiatus.

For July, my posting will be very light, confined to the odd product review or book review. Following a short flurry around SES San Jose, Aug. 7-10, posting will be nonexistent Aug. 12-26.

Posted by Andrew Goodman




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