I've been saying for quite some time that the CPC (cost per click) model will die. Three years ago top marketers have moved aggressively toward the CPA (cost per acquisition) model. Why? Simply put Click Fraud. Long term marketing affliate relationship are built on CPA not CPC.
Now the FCC agrees and soon the boom in Google and Yahoo's revenue models will be affected. Why because smaller and agency advertisers will come to the same conclusion that their counterparts have come to. Go CPA or die. The final analysis will show CPC is dying. That is why we are seeing a Keyword Price Index (KPI) come out .. a way to justify the circle of revenue that supports the CPC networks.
Wired News reports ..The Federal Trade Commission believes that no place is more fraud-friendly than the web. The agency estimates that more than one in 10 Americans (perhaps as many as 30 million people in this country) have fallen victim to fraud. Last year, internet-related fraud complaints surpassed all others, comprising 55 percent of all digital malfeasance, and for the first time the net supplanted the telephone as the most popular initial point of contact for dupers to meet dupees.
Having been around paid search and navigation since 1996 I'm not surprised by this new awakening just surprised it took this long. The next big thing...Real Time Internet and Real Time Search Results.
Companies like Six Apart, RSS aggregators, Technorati are blazing a trial into the new model.
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