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.


  1. 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.

  2. 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?