• Adotas, Thursday, May 11, 2006 10:30 AM

Recently, Revenue.net, a pay-per-click ad network, launched a cost-per-acquisition model, prompting Adotas to ask: does this signal some kind of change for the vast network of PPC providers on the Web? PPC models, both search and contextual, charge advertisers when consumers click on their ads; these consumers are thought to have taken an action indicating future client potential. Advertisers then measure sales to calculate their return on investment to ensure the campaigns are generating profit. With CPA, advertisers only pay for conversions, the very thing they're ultimately after. Each marketer has to decide what constitutes a conversion, such as a sale or a sign-up, but unless there's a qualifying action, advertisers are not charged. Searchfeed.com, a PPC provider, has discussed the possibility of developing a hybrid model, in which advertisers pay on a per-click basis, and partners would be paid on an acquisition basis. That would put the responsibility of determining traffic conversions on the search engine, and could possibly quell concerns of click fraud.

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