'Advertise Now - Pay Later, only if guaranteed results'

How new would be this idea?

[advancode]

Hi there,

Please help me to understand something. I searched on the Internet using <subject> (or part of it) but still didn't find an answer. I didn't see too much this idea: advertise now and pays later, only if thare are countable results (clicks, views). Otherwise is free advertising. How new is this idea? Is it revoluntionary for online advertising or not, in your opinion?

TIA

[sbskater10]

If your traffic is good enough, you can find advertisers. I personally would never give away free advertising space, although I have seen in the past as a sales pitch you can offer a huge discount for the first month which advertisers can't turn down. Once they see good results it makes sense for them to keep paying at the true price.

[eljefe3]

This is what PPC engines are doing. They list your site for free and you only pay when someone clicks on your ad.

[advancode]

I agree with free advertising - sooner or later become FFA farms, not good for anybody.

What we have thought is not established PPC, which is true that advertisers pay later. Idea is to introduce quality standards and make it free till some conditions are met. If advertisers get more click than X, or more visits than Y, and want to continue their advertising campaing they should pay. Otherwise remains free.

And what do you think combining this with permanent pixel advertising?

Thanks for your input.

[tke71709]

It's not revolutionary at all to be honest.

Basically you're looking at a CPA model (cost per action) rather than a CPM (cost per view) or CPC (Cost per click) model.

Most affiliate programs work this way and have for years. From an ad serving perspective CPC would be preferred by publishers in a lot of cases because it's a lot less work for them, but from an advertiser perspective I would go for CPA every time.

[ronin]

It was revolutionary in 1996. Or possibly 1995.

[advancode]

The only objection I have with CPA is that 'A' comes from 'anything', rather than 'action' :) . Or, in other words, 'action' could mean anything, usually sales or registrations.

It's true, you can define this 'action' in 'Advertise Now - Pay Later, only if guaranteed results' as 'having x [unique] visitors' (and pay only when/if this 'action' happen), but still can't see this method largely used.

[kassius]

lol yes advancode its been done before - shhhhhh its called affiliate marketing!