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Google CPA Program Coming Soon?
dakman




msg:1139625
 5:53 am on May 28, 2006 (gmt 0)

After this recent 90 mil click fraud settlement... new landing page crawling... and the new modified terms... I think google is tired of hearing click fraud complaints and lack of conversions from customers.. All advertisers at the end of the day want are results ( leads sales etc)

Google since they started adwords and using PPC model they thought "we give them traffic, we get paid, come again soon :)".... The problem is the billions Google is charging its advertisers is starting to be not proportional to the amount of success its advertisers are having with their program.. As bid prices and compeition rise for paid search more and more advertisers are noticing their ROI / conversions going down .. in order to keep their shareholders happy, avoid advertisers going elsewhere, Google needs to add more value ...

To do this I think Google is trying to gain more control of both sides of the spectrum ..relevant traffic via the quality score algo and the other side.. awarding advertisers that have converting landing pages ..

The changes google are making and the new clauses they are adding to their Adwords TOS makes me think big G is moving full steam ahead to a CPA model...
One of the main changes you may notice in the new Google Advertising Program Terms is that the terms anticipate future advertising products that may become available in other advertising formats and mediums. As we look forward to integrating more advertising products, we've re-worded some portions of the terms to make them applicable across a broader array of mediums and formats--anticipating, for example, that future products may be priced, billed, or managed differently than the current products.
- https://adwords.google.com/support/bin/answer.py?answer=37824

As an Adwords buyer for the past few years click fraud has been big... I rarely even use the content network anymore for my clients.. And as far as adsense, I think the click fraud complaints are making Google re-evaluate the CPC model and moving to CPA ... The click fraud issue i think is even expanding to the orangic search algo... Now its apparent more than ever need more trust than ever and authoritative links to get ranked/indexed because google wants to filter out all of those adsense spam sites that are generating junk traffic for its advertisers.. Even after the algo changes and attempts to improve click quality the PPC model just won't continue to work... just as many people planned CPA coming... I think its right around the corner...

Seems like also this CPA program will tie in other services like the Gbuy service in the works.. (like what they did with Gmail/Google chat but for advertisers)

I think GBuy will have something to do with this.... give consumers the ability to buy from adwords advertisers .. Google would then take a cut of sale/transaction ( similiar to PayPals merchant comissions from sales but maybe at a larger level since Google would be also driving customers to the advertiser)

See USPTO...
GBuy ...IC 036. US 100 101 102. G & S: Electronic commerce payment services, namely, establishing funded accounts used to purchase goods and services on the Internet

Anyways just my thoughts what do you guys think on the future of Google's Advertising products?

How many think CPA is right around the corner?

 

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