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Old 08-29-2001, 02:34 PM   #1
FreeArcade
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Exclamation No more CPA!

I have come to the conclusion that CPA advertising is just a way of getting free advertising for the advertiser at the expense of the publishers.

I believe that CPA advertising will ultimately lead to the end of all advertising supported content on the internet.
Advertisers will only pay CPA because it is the cheapest. Publishers will all go broke, because it doesn't pay the bills.

It is time to stop.

Starting September 1, FreeArcade.com will no longer run any CPA programs.

I know it is tough and some will say that a little revenue is better than none, but if you take that attitude you will see your revenues dwindling slowly down to zero. Check your gut and tell me you don't agree.

I invite you to join me, the more sites that refuse CPA ads the more it will be accepted that we won't be stolen from anymore.

I told an advertiser today that we no longer accept any CPA campaigns, he couldn't believe it, but now he has too.
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Old 08-29-2001, 03:17 PM   #2
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I have to agree in theory with your post. My site, FunAuthority.com, does not do any type of CPA advertising EXCEPT in the FREE STUFF section. Everywhere else it is CPM (or CPC depending on how you look at Zonify).

However, on my DigiDealership.com site I do have some CPA in that I get paid for credit reports, financing, warranties, etc. This again though is intended to be temporary until I have enough clout that I can force the companies to simply be listed, whether I am generating sales for them or not.

I applaud your efforts and wish you the best of luck.
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Old 08-29-2001, 03:32 PM   #3
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CPA in itself is a great model. The user does something, and the advertiser pays you because YOU sent that user.

The problem of course lies with the merchants. Too many are swindling people out of deals, and that is what is causing the problems.

The 'market' is still very 'immature' imo
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Old 08-29-2001, 04:18 PM   #4
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What I think is the problem with CPA ads is that people who visits the advetisers site from your site probably need some time to think about if he/she should buy the product or not. If the person then decides to buy it he/she will probably visit the advetisers site directly and therefore not given you the credit you actually deserve.
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Old 08-29-2001, 04:54 PM   #5
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Koj,

Most reputable CPA merchants set cookies so that if the surfer returns in later days the original sender still gets credit.
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Old 08-29-2001, 05:00 PM   #6
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Again that matters on the merchant though Robert.

I remember a while ago in CJ many had cookie lengths of 45 days ... recently I was checking them out, and almost all had cookie lengths of only a DAY!

Imo ... if you are a content site .. forget all about advertising, grow a bit, and try to get sponsorships.

And if you are a gaming site, the allclicks + sneaky banner program can make you a VERY nice CPM
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Old 08-29-2001, 05:15 PM   #7
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Koj,

Most advertisers use atleast a 7 day cookie so if in the next 7 days they go back and buy or signup then you are rewarded. I think for monetary purchases (not just a signup or e-mail addy) then the cookies should be longer, atleast 30 days, people like to think before they buy.
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Old 08-29-2001, 05:55 PM   #8
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Your mileage may differ, and in this case obviously does

But I've always found that CPAs work best for me, both as a merchant and as an affiliate

The fact that you can earn $5, $10, $15, $20 or more from 1 visitor action is the attraction of CPA. Of course you have to spend a lot of time finding, researching, selecting and integrating the best CPA ads for you to make it work for you

Last edited by WildComputer; 08-29-2001 at 05:56 PM.
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Old 08-29-2001, 06:59 PM   #9
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Quote:
Originally posted by WildComputer
Of course you have to spend a lot of time finding, researching, selecting and integrating the best CPA ads for you to make it work for you
That is true...
The problem with alot of webmasters is that they want to paste a bunch of banners all over their websites and just hope for the money to roll in. Maybe it worked that way a few years ago but not anymore.
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Old 08-29-2001, 07:26 PM   #10
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As they say, everything (except chocolate) in moderation...

Every model features its own strengths and limitations, and finding which works best for you (and your audience) requires a testing, audience-knowledge and intuition gained through experience.

As you would have noted by reading the above comments, publishers' results are widely varied, with some seeing one of CPC/CPS/CPA/CPM performing best, and others finding that a combination of revenue sources and types provides the highest and most secure returns. Personally, I use all four models (in addition to the occasional time-limited sponsorship deal), and frequently see CPA returns exceeding those of CPM-based banners.

Your idea is quite solid, though, in that limiting access to your site's inventory could raise its perceived value in the eyes of media buyers. Snowball and others decided to go down a similar path when the spending slowdown started, in order to minimize the supply of inventory that would otherwise go to house banners in an attempt to boost demand. I'm not sure exactly how well this panned out for the trouble-stricken firm in question, but there's nothing wrong with giving it a go for a month or so to see whether or not your returns get a shot in the arm.
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Old 08-29-2001, 07:35 PM   #11
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It depends,

I have some CPA that give me =0.05 or more CPC

and I also have some CPC with "no clickable" banners, so =0.00 CPC

But I think a merchant must pay to affiliate some compensation if he cannot convert 1.000 or more hits in sales.
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Old 08-29-2001, 09:06 PM   #12
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Quote:
But I think a merchant must pay to affiliate some compensation if he cannot convert 1.000 or more hits in sales.
Good point, and one of the reasons why there is likely to be an increase in hybrid-style deals that offer a combination of pay models. FastClick members would be familiar with campaigns that offer a low CPM rate as security to the publisher, with CPC-based performance bonuses, and X10 have popularized the hybrid CPM+CPA model in their portal deals.

These are win:win exchanges that offer some security to each party, while providing each with potential upside when the offer is promoted in such a fashion and to such an audience as to stimulate measurable responses.
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Old 08-29-2001, 09:25 PM   #13
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I'd love to get opinions on this.

We could offer a hybrid deal with the flip of a switch, but we feel that it may be too confusing to the average webmaster.

I'd like to run sliding scale hybrid program, but I'm afraid that it would scare off too many webmasters.
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Old 08-29-2001, 09:32 PM   #14
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I would love to see SI explore that sort of model, and given that your publishers have already developed familiarity with concepts as as 2nd-click and confirmed CPA deals, I'm sure that they would understand a hybrid deal as long as the reporting system is quite straight-forward.

I'd be willing to punt that about 50% of web publishers have encountered a sliding scale payment model before, and that many of those have seen these feature some hybrid elements (such as the programs that pay on a CPC basis, but with the proportion of visitors that convert to members/customers determining which CPC rate is granted to the publisher).
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Old 08-30-2001, 12:03 AM   #15
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I agree - CPA is a waste. I personally try to avoid it as I can't recall ever making one sale on my web site. It is a way for advertisers to get free advertising, indeed.
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