3 ms·

CPA seems like the fairest model from my laypersons vantage point. Is there a reason this isn't more popular on its face? Only paying for an ad when it works s

CPA seems like the fairest model from my laypersons vantage point. Is there a reason this isn't more popular on its face? Only paying for an ad when it works seems like you could charge more for the when it works part as a service (in this case Yahoo Ads or Google Ads) but it allows businesses to run ads at a higher rate if they're willing to give up more money on impression (where impression = someone buys)

toast0 3y ago
The big issue with CPA is attribution. It's one thing if you see the ad, click through, and make a booking in a single session. That's easy to attribute, if all the parties involved trust each other to do the tracking. (Parties include the advertiser, the publisher, the ad network(s), maybe even the advertising agency) But what if you clicked through the ad, and then close the window, but later come back and book through the advertised site? Now we also need to have come to an agreement about 'lookback window'. Maybe a fair lookback window is different for different markets. But it gets worse. What if you clicked through the ad on your phone, and then booked on your desktop? No tracking. Or even worse, what if it's a brand ad, and you come into the physical store and buy? Definitely no tracking. (well, some people try to get tracking for that, but it's pretty iffy)
- kevinventullo 3y ago
  Also, tracking is getting increasingly harder.
Macha 3y ago
It shifts risk to the publisher. The publisher has already provided the service of making their user experience in aid of the advertisers goals. Should they get nothing for that? What if the advertiser just made an uninteresting ad? What if the advertiser's products are overpriced?
rcxdude 3y ago
It requires a lot of tracking and there's a lot of games that can be played as to who actually "made the sale"

3 ms·

CPA seems like the fairest model from my laypersons vantage point. Is there a reason this isn't more popular on its face? Only paying for an ad when it works s

by no_wizard 3y ago

toast0 3y ago
The big issue with CPA is attribution. It's one thing if you see the ad, click through, and make a booking in a single session. That's easy to attribute, if all the parties involved trust each other to do the tracking. (Parties include the advertiser, the publisher, the ad network(s), maybe even the advertising agency) But what if you clicked through the ad, and then close the window, but later come back and book through the advertised site? Now we also need to have come to an agreement about 'lookback window'. Maybe a fair lookback window is different for different markets. But it gets worse. What if you clicked through the ad on your phone, and then booked on your desktop? No tracking. Or even worse, what if it's a brand ad, and you come into the physical store and buy? Definitely no tracking. (well, some people try to get tracking for that, but it's pretty iffy)
- kevinventullo 3y ago
  Also, tracking is getting increasingly harder.
Macha 3y ago
It shifts risk to the publisher. The publisher has already provided the service of making their user experience in aid of the advertisers goals. Should they get nothing for that? What if the advertiser just made an uninteresting ad? What if the advertiser's products are overpriced?
rcxdude 3y ago
It requires a lot of tracking and there's a lot of games that can be played as to who actually "made the sale"