Tuesday, December 05, 2006

Pay-per-click: Old School Advertising

There is a new way of paying for ads and is gaining popularity. It's called pay-per-action, pay-per-performance, or pay-per-sell. The concept is trivial. An advertiser pays for an ad whenever a user buys the item advertised, not when a user clicks on the ad.

For a consumer, this means more relevant search results and less-expensive items shown first, because the ads can make money for the advertising agency only when the consumer buys the items.

Some ad agency websites using this concept to sell ad space:
Jellyfish.com, TheFind.com and MyTriggers.com

Read the NYT review:
As Ad Costs Rise, a Move to Challenge Pay-Per-Click

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