gregbo - 2:58 am on Mar 30, 2006 (gmt 0)

I dont think PPC will go away but will evolve including better fraud detection and also further evolve with the increase of Internet Telephony the higher end will be for Pay Per Call and the cost I suspect will be in the order of 4 to 5 times the cost of current offerings , with this technology fully in place the PPC costs may decrease

The "better" that fraud detection gets, the more it will eat into the SE and/or ad network's profits and valuation. For example, it isn't possible to distinguish between two nonconverting click streams, one created by someone who clicks but doesn't buy, and another initiated on a compromised computer by a fraudster. Another issue to consider is that there is an increasing amount of country-specific blocking, as advertisers and publishers realize that some countries are rife with click fraud. As this becomes better known in the investment community, this will cause the valuations of the SEs and ad networks to drop, since a good deal of growth has already been priced into their stocks based on anticipated revenues from those countries. To boost their valuations, the SEs and ad networks will be forced to switch to business models that are much less subject to fraud than CPC.