From CPC, CPM and Now to CPA: What Future Awaits Online Advertising?

Two things happened in the week that just ended that is worthy of note for any serious and futuristic AdSense publisher and AdWords advertiser.

1. Judge Joe Griffin of Arkansas gave a final nod of approval to the amicable settlement of Ninety Billion Dollars ($90 Billion) in the suit between Google and some of her biggest advertisers led by Lane’s Gifts and Collectibles.

2. Larry Page, Google Co-Founder and President of Products, at a Second Quarter investor conference call spoke about being “excited about using more data” (on CPA campaign that is currently being test run by Google).

The controversy surrounding the growing incidence of click fraud in recent times may have been part, but not the only reason, why Google and her partners in the Content Referral Network may have chosen this “escape route”.

Some new comers into the PPC industry like have begun a similar program to the CPA and are sure getting a growing list of publishers to subscribe (two of my websites are currently involved with the Blogsvertise program). It is quite probable that the eagle-eyed Google saw an opportunity of fortune lying on the table, and she knows that by the sheer force of her wider reach, she could position herself to take a big slice of the pie when the baking is completed.

A close scrutiny of the CPA campaign shows that, it is going to demand a greater product promotion commitment from website publishers participating in it. This may look detestable and may even be seen as a threat to the freedom of entrepreneurship choice, at the beginning. Publishers are going to begin to query why they must go out of their traditional content writing to recommend and promote any product assigned by Google to them.

The bottom line however is the greater revenue both for Google and the participating publishers. You can’t eat your cake and have it at the same time. I can see an astonishing earnings from the CPA when it finally comes on stream. The Calacanis, Shoemoney, and other current big earners testimonies would be a child’s play in the next five years when the “CPA scourge” would have overtaken and ravaged the industry.

Water would always find its own level anywhere, I have always advocated that the invisible forces of the market would not condone Google, Yahoo, MSN and others to encourage click fraud because of intrinsic gains, as some of our industry colleagues have insinuated. That would naturally erode the integrity and confidence of the industry. While click fraud cannot be absolutely eliminated, these new innovation would certainly check and reduce it to an insignificant minima.

Google is an awesome giant, and like I said in another review on Amazon, It is not a frightening Goliath, in fact, we are very comfortable with the innovative, continuous and incredible growth of this giant. The bigger it grows the safer we feel.

I am a Commerce, Computer and Law graduate. I am running my own IT Company since 1993. I like to Read, explore Hindu Sanskruti, Travelling and Riding/Driving.

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