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Wednesday, June 21, 2006
Google's testing of a cost-per-action network is certainly as newsworthy as the blogosphere makes it out to be, but let's not get carried away. Cost per lead models are certainly nothing new to many industries. We've had our share of clients who have come grumbling to us from fields like real estate and insurance, dissatisfied with the mysterious lead generation processes and deteriorating lead quality from services they typically refer to as "the usual suspects."
Cost per sale? If I can literally run my ads on a pure affiliate model, then I'll happily offer that payout to the publisher. No problemo there.
But there are going to be bumps in the road here in spots, for sure. When "actions" become currency (just as when impressions and then clicks became currency), then there are incentives to either emulate those actions or to generate them through unscrupulous techniques (poaching from other affiliates, spamming search engines, spamming inboxes, etc.) - as affiliate networks have long known.
It's interesting though. And it comes at a time when eBay seems to be launching a similar model.
Posted by
Andrew Goodman
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D'oh!
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