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June 29, 2006
Google Checkout and the Death of CPC Ads
Om has a provocative and thoughtful take on Google Checkout:... this is a dangerous and most brilliant assault on the "cost per click" (CPC) plans of Microsoft, Yahoo and everyone else who is coming to the party ... late. This move is about cost-per-action advertising. It is about kicking up the online advertising business ... a notch!Read the whole thing.
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Google Solution - (CPM) "COST PER MONTH"
How is this for a very simple solution - CPM (COST PER MONTH)
An advertiser offers a fixed monthly amount for what he/she is willing to pay Google. This eliminates all concerns about click-fraud, simplifies the debate between CPC, CPA ... and lets advertisers fix costs.
For example (Agoracom deals with finance sites)
I'm willing to pay Google $2,500/month to market my keywords on finance sites and Google search. As such, I receive a pro-rata amount of context ads and paid search results relative to my competitors. As a result, I no longer care about click-fraud because my placement and performance are based on my budget relative to my competitors with the same terms, not click-throughs.
Send through all the click-fraud you want. As long as I get the real clicks resulting in sales, leads and traffic, I'll continue to pay my $2,500/month.
For affiliates, Google pays them a pro-rata amount based on number of click-throughs and ads served relative to other sites. If there is a click-fraud issue, its between the sites and has no affect on advertisers.
Thoughts Paul?
Best,
George
Paul, I wonder why the feed version of your post as well as ALL other blogs I follow via feed display the identical Lenovo ad forever. I don't know if it's feedburner or FM, but someone is not doing a very good job here.