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cpa

This week, I met with Dave Morgan, who is the CEO and founder of TACODA, a company that develops technologies for online advertising. In fact, he is one of the pioneers of the online advertising business - as he was the founder of Real Media, which is now 24/7 Real Media

He made the interesting point that Google is really just an electronic yellow pages business.  However, it is an extremely scalable one.

It also has a great business model.  That is, an advertiser only pays if a user clicks on a text ad.  This is known as cost-per-click (CPC).

However, this is not necessarily the best approach.  What if a user clicks an ad but does not buy anything? 

So, now Google is experimenting with another model: cost-per-action (CPA). 

Continue reading Google: from CPC to CPA

Google: from CPC to CPA originally appeared on BloggingStocks on Fri, 23 Jun 2006 08:24:00 EST. Please see our terms for use of feeds.

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