The shopping cart integrated into an ad idea may work in some cases, but I think there will still be a lot of CPC advertising, where by visitors read, think, book-mark, and return.

As for the likes of Amazon and eBay, they have a completely different business model. I would not shop on Amazon for example, if they had ads. I go there for books. They do a great job of selling books, and now a whole lot more besides. I go there when I already know what I want. I don’t surf until I find an ad telling me what I want!

It’s just another tool in the commercial toolbox, in my opinion.

One thing is for sure, online advertising just got more accountable , transparent and measurable. How is traditional advertising going to survive ?

The Big Deal is Google’s ability to integrate its payment system into credit card transaction networks to tie online behavior to offline CPA transactions, and then have the advertiser paying based upon land-based store sales. How Google makes money from local advertising, which all the networks are struggling trying to figure out, is to tie online behavior (click on a coupon) to a registered user’s credit card via G-Pay, and then associate this behavior to the advertiser’s CPA goal (purchase at the store).

Think about it… Once the user has registered their credit card with Google, Google acts as a trusted party to tie the consumer’s online interaction with merchant’s ads that are redeemed at their offline store. Search for “jewelry stores” in Palo Alto, you see 20 strores but one has a 40% off coupon redeemable in 24 hours. You click on the coupon, Google acknowledges your action, then you visit the store, buy and see the 40% off on your receipt.

That’s a transparent CPA model that benefits the consumer, the merchant and makes Google (or any network for that matter) money from offline sales. -eddie

My first move upon learning of Google Checkout, knowing all the Adwhore forces Wayne monitors are seeking leverage or defensive positions, was to go directly to several Cart/ecatalog providers and demand Google-Checkout API interfacing. Why? So I could arm myself as client webmaster and AM with answers to the inevitable questions coming my direction as this Google-Checkout, Adwords branding & CPA move hits the media. My affiliates have to get referral credit and my clients need first mover exposure.

Not surprisingly the Cart/ecatalog providers were in continuous meetings on this very subject. Google has smartly restricted Google-Checkout Adwords branding to those entities willing to fully interface cart checkout to this consumer friendly payment option. The quick make a Google “Buy It Now” procedure button restricts passing product options, and doesn’t meet Google’s branding display guidelines as to % of total ecatalog offerings to display the Adwords logo. Here comes the merchant made for Adwords micro sites as they seek relief from the affiliate cookie cannons and PPCSE click cheats.

My advice for Google to generate Google-Checkout traction is for them to purchase someone like http://www.volusion.com and push it upon their Adwords merchants as an immediate interfaced hosted solution. Turn Volusion into a real multi-merchant single checkout cart/ecatalog system and make it the engine for phase II of Froogle and the private AOL shopping community. For months they have digested the http://www.ecomcity.com/safehaven-network.htm model which guarantees Ad blockers and 100% CPA reporting are taken out of Waynes 4 risk factors. (#1 & 2)

Physical clicks, via the Google Checkout Now buttons, given only to trusted consumer responsible merchants, is an entry barrier to all the common blackhat affiliate players and the Adwhore cookie cannons. There goes #4.

If Google foregoes any membership in the IAB and DMA refusing any temptations for selling off conversion stats, surfing habits and consumer privacy info they are home free on #3. Can they pull this off by siding with the all powerful ecommerce entity that has no representative inside the Ad industry boardrooms. The consumer in control of the mouse. If they really have learned the meaning of my aged tagline “What have you done Today to put real value into a click … from a shoppers viewpoint” they will turn the pay-per-performance industry on it’s ear.

Meanwhile Google CPA and Checkout will offer me an easy way to double sales again for my clients… without hurting their enviable conversion ratios. I have no blackhat, PPCSE abusers or grey area affiliates to even factor into any Google campaign decisions. They just keep on averaging 1 sale per 20 physical clicks, year after year.

I strongly feel that Google has hijacked Microsoft’s punchline “where do you want to go Today?”, by giving people just One box to make their wish and bingo they’re served:) and this truly an intriguing prospect.

They seem to be oncourse to a Grand Plan, which only Time will unravel.

An advertiser offers a fixed monthly amount for what he is willing to pay Google. This eliminates all concerns about click-fraud, simplifies the debate between CPC, CPA, CPS, … and lets advertisers fix costs.

For example (Agoracom deals with finance sites)

I’m willing to pay Google $2,500/month to market my keywords on finance sites and Google search. As such, I receive a pro-rata amount of context ads and paid search results relative to my competitors. As such, I no longer care about click-fraud because my performance is based on my budget relative to my competitors with the same terms, not click-throughs.

For affiliates, Google pays them a pro-rata amount based on number of click-throughs and ads served relative to other sites. If there is a click-fraud issue, its between the sites and has no affect on advertisers.

Thoughts?

Best, George

The core problem is that spyware and adware can “grab” CPA commissions on transactions that would have happened anyway (even had the spyware not intervened). For example, spyware can wait until a user goes to the Dell site, then invoke a Dell CPA link to get commission if the user makes a purchase from Dell.

Think that’s just speculation, and that it doesn’t really happen? Think again. See http://www.benedelman.org/news/091405-1.html . See http://www.benedelman.org/spyware/180-affiliates/ . Everything discussed there is CPA fraud.

CPA fraud may be a notch harder than PPC fraud. But it’s quite doable, and it’s been happening for years through most advertising-type spyware.

Readers need to focus on your comment in bold type font!

Yet please be aware that CPA is absolutely not fraud-proof. I helped found a CPA “affiliate” network that Doubleclick now owns… and the entire “adware/spyware” dillema reaches into big brand advertisers.

Then again, how do traditional affiliate (or even worse) CPA networks deal with fraud? That’s right, in reality they don’t deal with it… to the delight of advertisers who fund it… they pay it some lip service when needed otherwise they ignore it and keep ringing the cash register.

I’ll stop at this point but provide more insights and backup that last statement here http://www.thoughtshapers.com/index.php/google-checkout-affiliate-network-vclk-content-referral-network/ if anyone’s interested.

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