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2 commentsThursday, March 13, 2008

Economy Concerns A Boon For Online Ads

Less to spend means advertisers will spend smarter

2 Comments

Advertisers to opt for cost-per-action models

Brad Francis (CEO ShoppingTrader.com)

The dilemma here is that who sets the price for model? 

Brad Francis (CEO ShoppingTrader.com)  stated   "I agree, it is a very interesting debate.  However its my belief that the "cost-per-action model"  will definetely come out on top over the next year.   Most advertisers agree that a cost-per-action model, where they only pay for specific conversions, is preferred and certainly a way to reduce their fixed overheads.   Yet as advertisers opt for pay-per transaction model, we should not forget, that the advertising cost for those pay-per transaction models will indeed rise.   The dilemma here is that,  who sets the price for model  -  the Advertisers or the Googles in this new world?"   In the past the Advertiser does and the Provider then decides whether or not they are prepared to run the Ad campaign.   Taking this to the extreme - it sounds like Affiliate Marketing may be on rise.

There is no doubt that this pay-per transaction model, will certainly lead to fierce competition also, which may allow  the smaller to middle players to obtain increased revenues.

Interesting times ahead indeed.

Brad Francis
CEO ShoppingTrader.com

 

Does measurability get you cut?

This is an interesting debate.

I am not completely convinced that reality is not counterintuitive in a rapidly changing market. I tried to dig into this debate a bit too on Lead Marketwatch.

I am a bit inclined to begin embracing Niki Scevak's argument at Bronte Media.

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