A chink in Google’s Revenue Armor


We all know how Google has been cleaning up with all things contextual-ad related. But there are some chinks in its seemingly invincible model. David Galbraith writing in response to Tom Foremski writes, “what would happen if someone created a treasure hunt with a large cash prize awarded to a single click of an unpublicised adwords ad. A subsequent clicking frenzy could drain advertisers’ accounts, prompting them to ask for a refund. This hypothetical idea is part of a more serious problem – pay-per-perfomance advertising is open to fraud – when you click something, money drains out of an account – this doesn’t happen with TV, print or radio ads.”


Fazal Majid

The real problem is that pay-per-click is NOT pay-per-performance. Clicks are an irrelevant metric put forward by marketers unnecessarily embarassed by low conversion rates from visits to actual paying sales. A click is not performance, a sale is, which is why affiliate programs like the one Amazon runs for itself are probably a better value for marketers (although they can also be gamed).

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