A blog on using the power of Disruptive Business Models to build successful businesses...and other stuff. by Joe Agliozzo

Thursday, June 22, 2006

Google AdSense to add Affiliate Marketing Option - CPA

Saw this post today that some AdSense advertisers have received information about a new alternative to AdSense that is based on cost per action (CPA). This essentially turns AdSense into an affiliate program, where the publisher gets paid on a per lead basis. Some observations:

1. This has to be a response to the major click fraud problems that advertisers experience in AdSense and contextual advertising in general;

2. Google should do affiliate programs MUCH BETTER than CJ, etc. in terms of payments, reporting, policing the network, etc. so I would agree with the original poster that this is big trouble foor CJ and the other affiliate program providers;

3. We always think in terms of optimization, and given that an advertiser can eventually pay for ads through CPM, CPC or CPA, there are that many more opportunities for testing to find the optimal ad, bid and method, so analytics tools will be that much more important.

Of course if Google expands the lead generation market even more with this, lead quality measurement will become that much more important, because all the click fraud guys will move to "lead fraud"....

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