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New AdSense model

March 20th, 2007 · 3 Comments

Google move the AdSense goalposts

I see that Google is running a beta test on its new AdSense model and is inviting current US AdWords advertisers to take part. Rather than the current Cost Per Click (CPC) mechanism, it will be paid to the publisher on a Cost Per Action (CPA).

How much difference will this make to current users of the AdSense program? Will they be better or worse off?

I can see this as being well received by advertisers as well as reducing click fraud. As Darren Rowse says over at ProBlogger, it’s a move towards the model used by Commission Junction and regular affiliate programs. The advertiser only pays the publisher a commission based on the number of converted sales rather than on blanket advertising.

From a publishers perspective, though, is it more appealing? Sure the potential cash returns are higher but they’re likely to be more sporadic and, unlike a system like Commission Junction, you’re not going to have any control over what ads appear on your site. Sure you don’t with the current AdSense but you take that hit based on the fact that you’re getting CPC rather than CPA.

I think the moral here is to ensure that you protect your revenue streams by not relying solely on AdSense. Being 100% reliant on the current AdSense model makes no sense whatsoever. Generally speaking the ROI is pretty minimal and you also never know when you may fall foul of Big G and have your account terminated overnight.

Personally I’m quite excited about the new AdSense CPA model. What about you?

Tech Tags: ,

Tags: Making Money Online

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