dakman - 7:07 am on Jun 22, 2006 (gmt 0)

I think CPA ads will compete in the same auction as CPC & CPM ads. So CPA ad will appear when google thinks that it will make more money to publisher than CPC&CPM ads. That would solve most of the problems with CPA ads discussed here.

The issue is the CPA model is going to be the more favorable option than PPC... to most advertisers ...

What happens when Google maintains a 90% CPA only advertiser inventory?

If that happened I would be sending all the advertisers tutorials on how to make converting landing pages or else as a publisher I wouldn't earn much... :)

Google would need to do either or all of below to make CPA work in my opinion

A. Standardized landing pages at least for "product" purchases... As far as Lead Generation it is a whole other area.. cause the more fields and questions a advertiser has on their landing page(s) or the more steps/pages it take to complete a conversion, the less conversions which means less money to G and us...

B. Enforce a conversion rate minimum to make sure advertiser conversions actually occur... Eg... your landing page would have to have a minimum of a 10% average conversion rate or else the advertiser would have to bid above the highest CPA price for their vertical category or keyword... in order for their CPA campaign to be Active

The min conversion rate could be calculated based on the current min CPC and the conversion rate of the advertisers landing page...