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Microsoft Spends To Undermine Google's Pay-Per-Click Gold Mine
Last year, Microsoft bought Jellyfish.com, a company that made its name by sharing the wealth of Internet advertising. Jellyfish.com was able to offer those using its e-commerce search engine very competitive prices because it gave half of the ad dollars paid by its e-commerce partners back to online customers. This is a form of cost-per-action advertising -- the advertiser pays for a specific action (such as a sale) rather than for a click. Cost-per-action ads are generally less profitable that cost-per-click ads for search engines like Google and for publishing partners. In the model Microsoft has just rolled out, the cashback rebate -- set by the merchant -- goes directly to the consumer. The fact that Google hasn't said much about its cost-per-action beta test since June 2007 suggests that the testing isn't going all that well. |
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