Comments on: Google Launches CPA Ads - Problems with the Model http://www.vinnylingham.com/google-launches-cpa-ads-problems-with-the-model.html Entrepreneur, Blogger, Speaker, Webaholic & Search Engine Guru Sat, 30 Aug 2008 16:35:41 +0000 http://wordpress.org/?v=2.6.1 By: The Adventures of PPC Hero - Heroic Feats of Pay Per Click Management : 5 Things to Consider When Running a Google AdWords Pay Per Action Campaign http://www.vinnylingham.com/google-launches-cpa-ads-problems-with-the-model.html#comment-86031 The Adventures of PPC Hero - Heroic Feats of Pay Per Click Management : 5 Things to Consider When Running a Google AdWords Pay Per Action Campaign Wed, 21 Nov 2007 21:09:24 +0000 http://wordpress.vinnylingham.com/2006/06/22/google-launches-cpa-ads-problems-with-the-model/#comment-86031 [...] PPA system. Google is still tweaking their infrastructure as they continue to receive feedback from advertisers. What I’m trying to get at is, Pay-Per-Action is in a BETA test and should be handled as [...] [...] PPA system. Google is still tweaking their infrastructure as they continue to receive feedback from advertisers. What I’m trying to get at is, Pay-Per-Action is in a BETA test and should be handled as [...]

]]> By: MM http://www.vinnylingham.com/google-launches-cpa-ads-problems-with-the-model.html#comment-153774 MM Wed, 21 Mar 2007 12:28:18 +0000 http://wordpress.vinnylingham.com/2006/06/22/google-launches-cpa-ads-problems-with-the-model/#comment-153774 You've still got the problem with the fact that it's adsense that this system will be running on. People who click adsense ads are more curious than ready to buy. If we're talking CPA, to make any real money, the low low number of people who actually click these ads would have to be buying something big. Most people who click an adsense ad to get off some worthless site don't just have their credit card laying around ready to enter the number to buy a product they didn't know they needed. I think Google makes more money just charging per click.<br><br>Let the arbitragers make the money. They're the ones buying majority of the clicks. You’ve still got the problem with the fact that it’s adsense that this system will be running on. People who click adsense ads are more curious than ready to buy. If we’re talking CPA, to make any real money, the low low number of people who actually click these ads would have to be buying something big. Most people who click an adsense ad to get off some worthless site don’t just have their credit card laying around ready to enter the number to buy a product they didn’t know they needed. I think Google makes more money just charging per click.

Let the arbitragers make the money. They’re the ones buying majority of the clicks.

]]> By: MM http://www.vinnylingham.com/google-launches-cpa-ads-problems-with-the-model.html#comment-19838 MM Wed, 21 Mar 2007 07:28:18 +0000 http://wordpress.vinnylingham.com/2006/06/22/google-launches-cpa-ads-problems-with-the-model/#comment-19838 You've still got the problem with the fact that it's adsense that this system will be running on. People who click adsense ads are more curious than ready to buy. If we're talking CPA, to make any real money, the low low number of people who actually click these ads would have to be buying something big. Most people who click an adsense ad to get off some worthless site don't just have their credit card laying around ready to enter the number to buy a product they didn't know they needed. I think Google makes more money just charging per click. Let the arbitragers make the money. They're the ones buying majority of the clicks. You’ve still got the problem with the fact that it’s adsense that this system will be running on. People who click adsense ads are more curious than ready to buy. If we’re talking CPA, to make any real money, the low low number of people who actually click these ads would have to be buying something big. Most people who click an adsense ad to get off some worthless site don’t just have their credit card laying around ready to enter the number to buy a product they didn’t know they needed. I think Google makes more money just charging per click.

Let the arbitragers make the money. They’re the ones buying majority of the clicks.

]]> By: Technology Top 100 Awards - South Africa http://www.vinnylingham.com/google-launches-cpa-ads-problems-with-the-model.html#comment-1752 Technology Top 100 Awards - South Africa Sun, 19 Nov 2006 22:16:04 +0000 http://wordpress.vinnylingham.com/2006/06/22/google-launches-cpa-ads-problems-with-the-model/#comment-1752 [...] * Google Launches CPA Ads - Problems with the Model [...] [...] * Google Launches CPA Ads - Problems with the Model [...]

]]> By: Vinny Lingham’s Blog » Blog Archive » Vinny Lingham’s Top 10 Blog Posts of 2006 http://www.vinnylingham.com/google-launches-cpa-ads-problems-with-the-model.html#comment-1601 Vinny Lingham’s Blog » Blog Archive » Vinny Lingham’s Top 10 Blog Posts of 2006 Mon, 13 Nov 2006 20:17:27 +0000 http://wordpress.vinnylingham.com/2006/06/22/google-launches-cpa-ads-problems-with-the-model/#comment-1601 [...] Google Launches CPA Ads - Problems with the Model of Cost Per Action advertising [...] [...] Google Launches CPA Ads - Problems with the Model of Cost Per Action advertising [...]

]]> By: Vinny Lingham http://www.vinnylingham.com/google-launches-cpa-ads-problems-with-the-model.html#comment-153773 Vinny Lingham Mon, 26 Jun 2006 19:43:00 +0000 http://wordpress.vinnylingham.com/2006/06/22/google-launches-cpa-ads-problems-with-the-model/#comment-153773 Not sure that I agree with you either!! :-)<br><br>If the clicks are high, and no conversions, then Google will most likely determine that the ad is not relevant - their ultimate measure of whether an ad is displayed or not.<br><br>High CTR & low yield will lead to a scenario where Google should derank the ad, due to non-interest shown by the user, especially in a CPA scenario where the user is not completing the specified event.<br><br>Google really doesn't care that much about money if the ads are not relevant, but when it's relevant - they will milk you for maximum CPC/CPA - make no mistake! <br><br>In my mind, Google will use a mixture of CTR & Conversion rate to determine whether or not an ad is relevent, so "false" clicks should affect yield and therefore ad rotation. Not sure that I agree with you either!! :-)

If the clicks are high, and no conversions, then Google will most likely determine that the ad is not relevant - their ultimate measure of whether an ad is displayed or not.

High CTR & low yield will lead to a scenario where Google should derank the ad, due to non-interest shown by the user, especially in a CPA scenario where the user is not completing the specified event.

Google really doesn’t care that much about money if the ads are not relevant, but when it’s relevant - they will milk you for maximum CPC/CPA - make no mistake!

In my mind, Google will use a mixture of CTR & Conversion rate to determine whether or not an ad is relevent, so “false” clicks should affect yield and therefore ad rotation.

]]> By: Massimo http://www.vinnylingham.com/google-launches-cpa-ads-problems-with-the-model.html#comment-153772 Massimo Mon, 26 Jun 2006 18:23:00 +0000 http://wordpress.vinnylingham.com/2006/06/22/google-launches-cpa-ads-problems-with-the-model/#comment-153772 Hi Vinny,<br><br>I understand what you're saying, but I don't agree with you when you say...<br><br>>If Google mixes CPC & CPA inventory for the purposes of yield, then people will click the ads, to generate lower yields - creating a similar click fraud scenario to what we have now. <br><br>I think that for CPA ads the fact that people will make false clicks on them or not does not really count because in the end what Google will want to match is how many impressions they give a certain advertiser (no matter if he pays per click or per action) vs. how much money they make. So, on CPA ads you can't cheat by just clicking, you can only make click-to-action stats look funny :-) Hi Vinny,

I understand what you’re saying, but I don’t agree with you when you say…

>If Google mixes CPC & CPA inventory for the purposes of yield, then people will click the ads, to generate lower yields - creating a similar click fraud scenario to what we have now.

I think that for CPA ads the fact that people will make false clicks on them or not does not really count because in the end what Google will want to match is how many impressions they give a certain advertiser (no matter if he pays per click or per action) vs. how much money they make. So, on CPA ads you can’t cheat by just clicking, you can only make click-to-action stats look funny :-)

]]> By: Vinny Lingham http://www.vinnylingham.com/google-launches-cpa-ads-problems-with-the-model.html#comment-89 Vinny Lingham Mon, 26 Jun 2006 14:43:00 +0000 http://wordpress.vinnylingham.com/2006/06/22/google-launches-cpa-ads-problems-with-the-model/#comment-89 Not sure that I agree with you either!! :-) If the clicks are high, and no conversions, then Google will most likely determine that the ad is not relevant - their ultimate measure of whether an ad is displayed or not. High CTR & low yield will lead to a scenario where Google should derank the ad, due to non-interest shown by the user, especially in a CPA scenario where the user is not completing the specified event. Google really doesn't care that much about money if the ads are not relevant, but when it's relevant - they will milk you for maximum CPC/CPA - make no mistake! In my mind, Google will use a mixture of CTR & Conversion rate to determine whether or not an ad is relevent, so "false" clicks should affect yield and therefore ad rotation. Not sure that I agree with you either!! :-)
If the clicks are high, and no conversions, then Google will most likely determine that the ad is not relevant - their ultimate measure of whether an ad is displayed or not.

High CTR & low yield will lead to a scenario where Google should derank the ad, due to non-interest shown by the user, especially in a CPA scenario where the user is not completing the specified event.

Google really doesn’t care that much about money if the ads are not relevant, but when it’s relevant - they will milk you for maximum CPC/CPA - make no mistake!

In my mind, Google will use a mixture of CTR & Conversion rate to determine whether or not an ad is relevent, so “false” clicks should affect yield and therefore ad rotation.

]]> By: Massimo http://www.vinnylingham.com/google-launches-cpa-ads-problems-with-the-model.html#comment-88 Massimo Mon, 26 Jun 2006 13:23:00 +0000 http://wordpress.vinnylingham.com/2006/06/22/google-launches-cpa-ads-problems-with-the-model/#comment-88 Hi Vinny, I understand what you're saying, but I don't agree with you when you say... >If Google mixes CPC & CPA inventory for the purposes of yield, then people will click the ads, to generate lower yields - creating a similar click fraud scenario to what we have now. I think that for CPA ads the fact that people will make false clicks on them or not does not really count because in the end what Google will want to match is how many impressions they give a certain advertiser (no matter if he pays per click or per action) vs. how much money they make. So, on CPA ads you can't cheat by just clicking, you can only make click-to-action stats look funny :-) Hi Vinny,

I understand what you’re saying, but I don’t agree with you when you say…

>If Google mixes CPC & CPA inventory for the purposes of yield, then people will click the ads, to generate lower yields - creating a similar click fraud scenario to what we have now.

I think that for CPA ads the fact that people will make false clicks on them or not does not really count because in the end what Google will want to match is how many impressions they give a certain advertiser (no matter if he pays per click or per action) vs. how much money they make. So, on CPA ads you can’t cheat by just clicking, you can only make click-to-action stats look funny :-)

]]> By: Vinny Lingham http://www.vinnylingham.com/google-launches-cpa-ads-problems-with-the-model.html#comment-153771 Vinny Lingham Mon, 26 Jun 2006 08:58:00 +0000 http://wordpress.vinnylingham.com/2006/06/22/google-launches-cpa-ads-problems-with-the-model/#comment-153771 Hey Massimo,<br><br>I certainly agree with you - but the credit card fraud is just one way of creating issues. If Google mixes CPC & CPA inventory for the purposes of yield, then people will click the ads, to generate lower yields - creating a similar click fraud scenario to what we have now. I'm sure that CPA is the way to go, and I'm even more sure that the road will not be easy!<br><br>V Hey Massimo,

I certainly agree with you - but the credit card fraud is just one way of creating issues. If Google mixes CPC & CPA inventory for the purposes of yield, then people will click the ads, to generate lower yields - creating a similar click fraud scenario to what we have now. I’m sure that CPA is the way to go, and I’m even more sure that the road will not be easy!

V

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