Tuesday, 21 November 2006

Pay Per Post

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There had been recent activities in a new paid advertising category which is Pay Per Post (PPP). PPP allows a blogger to be paid for writing about a company’s products or services. In many cases, bloggers are also required to put a link to the advertiser website. This is really similar to product placement in the movie industry, video gaming industry and even sometimes printed media. Therefore, we are not talking about anything new here. However, PPP has generated quite a huge controversy as it calls into question the authenticity and independence of the blog. I submit that readers should be skeptical about the content they read anyway these days even with reputable printed media. It really remains to be seen on how the startups such as ReviewMe and PayPerPost plan to shape the PPP industry. We have personally used one of the service ourselves. However, we have been disappointed by the quality of the content generated (even though positive) and it was clear that the bloggers are writing to make a really quick buck. I have no doubts that PPP will become an integral part of advertising in future. Pay Per Click (PPC) model is still the 800 pound gorilla of internet advertising. Click fraud remains a problem for the PPC model. Also, if an advertiser is not aware of the conversion rate, they could just be throwing money away into a black hole.

Pay Per Action (PPA) is the way to truly guarantee a transaction based on advertising. Ultimately, advertisers do want choices. An advertiser with a high conversion rate because of its product or service may favor PPC over PPA. An advertiser with a lower conversion rate may want to have a PPA model.

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Posted by caven at 7:53 PM in Advertising

 

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