| | Why CPA Should Replace PPC ? - Pay per click has been much more successful for online advertising than the Cost per action. But some problems are also there with Pay per click.
- PPC (pay per click) has changed the way advertising is done on the net; I dare say, it has changed the Internet itself. It has changed how websites view themselves and the way they view traffic to their sites. It used to be that would-be online entrepreneurs would just build sites and get web surfers to view them, then make money by selling services or products.
- Now, with the advent of pay per click programs, every web publisher views his or her site as an opportunity to become a six figure earner. The search engines see it as their opportunity to make billions, everybody is making money, and everybody is happy. So how can I dare to suggest that PPC should go away and be replace by CPA?
- Pay per click is the kind of package that Google offers via its AdSense program, and Yahoo offers through its Sitematch program. It simply means that the advertiser pays a particular amount of money every time his or her link is clicked on.
- Some search engines, such as Google, place the link for the ad with the most click throughs on top of their sponsored ad listings, in an effort to still offer the most relevant listings to search queries. if Google goes CPA, then they will be alloting advertising space on search results on an after-sale basis; this essentially means the ads will be shown for free (taking up valuabel real estate) with no guarantee of payment.
- AdWords doesn't require any sort of coordination or validation on the part of the merchant. With CPA, there will have to be some communication between Google and the merchant site. Google will not only have to track the click, they will have to track actions on the destination site. This means the site will have to feed some info BACK to Google for Google to get their money. Now, suddenly, Google's advertising revenue in a CPA scenario becomes dependent on merchant reporting.
- If Google goes CPA, then they will be alloting advertising space on search results on an after-sale basis; this essentially means the ads will be shown for free (taking up valuabel real estate) with no guarantee of payment.
- Once a user visiting a web site in the program clicks on one of the links, the automated system calculates how much is due to the website owner, how much is due to the search engine, and how much the advertiser is going to pay.
- The contextual pay per click program may be the single most revolutionary thing to have happened on the Internet, and one of the most wildly successful. This is because it keeps online advertisements unobtrusive to the web surfer. And the browsing audience, like every other audience, despises advertising.
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