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SEO 1 Forums > Revenue Networks >

CPA will replace PPC?



Author Thread
ohcnetwork
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Joined: 31 Mar 2005
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CPA will replace PPC?  Reply with quote  

Some speculate that CPA will replace PPC since click fraud is becoming a very big problem. What's your take?

I personally think that PPC will do just fine. It is true that Google and other contextual ad providers are having various problems, but given how much profit they generate today, I'm sure that they want to keep improving it and they also want to prevent click fraud. What do you think?


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Post Tue Nov 28, 2006 8:37 am
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dburdon
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Joined: 02 Aug 2005
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Location: Kent, England
Cost per action  Reply with quote  

OHCnetwork,

all good ppc campaigns should already be using their own internally generated cost per action and return on expenditure data. I think if the search engines took over the process you'd actually see costs rise. Witness the recent landing page quality issues.


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Post Tue Nov 28, 2006 9:59 am
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ohcnetwork
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Joined: 31 Mar 2005
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Re: Cost per action  Reply with quote  

quote:
Originally posted by dburdon
OHCnetwork,

all good ppc campaigns should already be using their own internally generated cost per action and return on expenditure data. I think if the search engines took over the process you'd actually see costs rise. Witness the recent landing page quality issues.

... I guess that's all good. It means that PPC ad publishers (like us) get paid more, right? In theory?


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Post Tue Nov 28, 2006 10:10 am
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aerodesigns
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Joined: 16 Nov 2006
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Location: UK
 Reply with quote  

I agree, they do seem to have detection systems in place for monitoring and refunding click fraud - however the efficiency of these remains unknown unless the website owner uses some kind of log analysis tool. Cost per action may mean that a greater proportion of the sellers profit is retained by the ad publisher and so it may be seen as less competitive (although avoids the risk of a high-amount PPC campaign that provides no tangible results).


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Post Tue Nov 28, 2006 11:30 pm
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quetivity
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 Reply with quote  

Either way, one party will benefit and the other will suffer. There is no way to weigh things out and please both ends.


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Post Wed Nov 29, 2006 12:02 am
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tork311
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 Reply with quote  

The traffic for organic search results is so much better and there is a certain amount of percieved credibility when your get the lead by being tops in the engines.


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Post Wed Nov 29, 2006 4:46 am
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snipergrunge
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Joined: 29 Oct 2006
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 Reply with quote  

About 13% clicks - fraud... but it will never happen. People click more than they buy, that's why Google, Yahoo, MSN, ASK will never change it. Moreover, if it happen, it will be not fair to websites who don't sell anything and it will hurt .gov , .edu websites.
Simply, if you can't pay back for sale or lead, you can't register for sponsored ads.
It might happend partly but only with magor companies like Ebay, Amazon, Buy, Napster etc, maybe their adds will be always in sponsored results but they pay only for action, not for click. It will be special agreements...


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Post Wed Nov 29, 2006 7:15 am
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aerodesigns
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 Reply with quote  

And I bet it's more than 13% in some cut-throat industries - trouble is that the higher the keyword bid price the more the click fraud will hurt before it is noticed!

Also, I agree that visitors will perceive organic results as more credible, as any Joe Bloggs (with some cash) can pay to be at the top sponsored position.


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Post Wed Nov 29, 2006 7:45 am
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xboxundone
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Joined: 04 Mar 2005
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 Reply with quote  

CPA will not do away with CPC I feel more publishers will move to cpa as they will pay more for a lead than a click but the click market is WAY to valueable to let it go for all parties even with the fraud.


Post Thu Mar 01, 2007 2:23 am
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saheera888
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Joined: 11 Jan 2010
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 Reply with quote  

But CPA is a very slippery slope. The issue goes back to why online publishers traditionally resist cost-per-click pricing for display advertising: your revenue becomes dependent on the advertiser’s creative. A good ad is going to get more clicks than a poorly executed one. CPA action takes that dependency a step further: the search engine’s revenue depends on both a well-designed pitch after the click plus an enticing offer. If the advertiser fails on either of those points, you’re not going to get paid and your inventory isn’t generating revenue.

If I ran a search engine, I’d be spending a lot of time and energy trying to maintain the credibility of my cost-per-click business. If the market really does turn to cost-per-action, we may end up looking back on these as the Golden Days of search engine advertising, when the money just fell from the sky.
Post Mon Jan 11, 2010 8:28 am
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Crystal Award Samples
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 Reply with quote  

Where is competiiton,there is gammonskulduggery ,PPC is good just the bad competitive atmosphere online, we need the post new rule to protect the PPC's atmosphere and struggle against the click fraud.


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Post Tue Dec 07, 2010 3:56 am
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dburdon
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Write good copy  Reply with quote  

Write lucid copy. Make sure it is understandable even if it is not using correct grammar.


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Post Wed Dec 08, 2010 9:50 am
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tracker
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Joined: 22 Jan 2009
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Location: Southampton, UK
Cost per lead  Reply with quote  

We work everything on cost per lead. A lead could be worth 10,000.


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Post Wed Dec 08, 2010 5:22 pm
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