PowerUp - 3:16 am on Jun 23, 2006 (gmt 0)

Lets see, we have CPC vs CPA and Publisher vs Advertisers vs Google....

I strongly believe that Google's interest is aligned more directly with the Publishers' interest no matter if it's a CPC or CPA because Google's revenue and Publishers' revenue are derived based on the same criteria and from the same source. This is true only if Google doesn't charge the CPA Advertiser a setup fee or activation fee or a fixed fee on top of the CPA fee.

So the battle is actually between Google and the Advertisers.

Scenario 1 : If Google's implementation of CPA can generate more advertising revenue, then the Publishers and G's shareholders also be happy.

Scenario 2 : If Google's CPA reduces advertising revenue, then G's shares/stock will tumble and the Management will have a tough time answering G's shareholders and the shareholders may well instruct G to go back to it's CPC. Afterall, the shareholders only care about the value of their stock/shares.