Sam Harrelson

CPA to Eventually Beat Out CPC?



Forget the age old CPA networks vs affiliate networks argument.

What about CPA vs CPC? That argument stirs up fun fighting words.

Aaron Goldman has an interesting piece on SearchInsider about this issue and the potential for macroeconomic trends to have a very real impact on the search and direct response industries:

Will CPA Get its Day?

There are a couple macro trends that lead me to believe a move to CPA might be in the cards. The first is consolidation in the space. For the first time, each of the Big 3 owns reputable ad serving technology. Not only does this provide access to conversion activity, but it delivers more reliable data that marketers will accept for billing purposes. The second is a movement toward transparency that’s pervading all facets of the marketing landscape. The inherent conflicts within GoogleClick, MicQuantive, and YahRightMedia demand a level of transparency heretofore unseen in the search space. There is simply no more transparent pricing model than CPA.

My take is that it is clear that marketers across the board have yet to realize the impact that CPA can have on the overall market economy given the reliance of more and more web2.0, mobile, video or social platforms on response instead of click or impression.

Clearly, there’s a need for improved and evolved metrics in online marketing. I think CPA could be hinting at the possible future of all online advertising and marketing.

Thoughts?



Posted: 01.24.2008

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