europeforvisitors - 2:32 am on Jan 12, 2006 (gmt 0)

Pay per conversion is an interesting rev-share model.

Not all advertisers are e-commerce or affiliate sites who expect immediate transactions. Service businesses, for example, are advertising for leads that can be developed into sales or business relationships at a later date. So, if the model called for pay per conversion, there would have to be agreement on what a "conversion" is.

If anything, I think it's more likely that Google, publishers, and advertisers will move to a CPM model (especially if Google wants to expand its roster of mainstream ad agencies and advertisers, not just the traditional PPC market of e-commerce and affiliate sites). Madison Avenue understands CPM, and impression fraud is probably easier to control than click fraud. (Also, CPM advertisers are used to having a certain amount of "waste circulation" from readers who don't see ads, radio "listeners" who leave their favorite FM station on for the dog during the day, or TV watchers who head for the bathroom when the commercials come on.)