In what marks the logical next step for online marketing, aCerno, a new ad network based on a Cost Per Action revenue model, launched last week. While Google has been toying with a CPA model for the past year or so, this launch marks what seems to be the first application of the CPA model on as broad a platform as an ad network. Internet Retailer spoke with aCerno's CEO to get an example of how the product worked:
"If you're interested in buying a big-screen TV, and you're on the web going to e-commerce sites and looking at different brands and price points, what we see is a cookie number unique to a browser that is associated with all that viewing of products and information about big-screen TVs," says Tom Sperry, CEO and chief privacy officer of aCerno. "We know cookie 456789 is probably very interested in purchasing a large-screen TV. Our advertisers can deliver a message to that user and influence that purchase decision on which brand he's going to buy and where he's going to purchase."
"The system's analytics also can predict what a consumer might buy next. 'If you buy a big-screen TV, then maybe you're interested in a surround-sound system or furniture for your TV room," Sperry says. "We only get paid when we generate a transaction, so it's very important to us that we're sure the ad we're showing has the best change of generating a transaction."
The launch of a CPA based ad network will no doubt please many retailers and other website looking for their marketing to lead to some sort of action, as it will remove any threat of click-fraud and lead to greater efficiency in online marketing spend. It remains to be seen how this will impact the CPC industry - will the CPA bring advertisers a greater ROI than they were seeing under the CPC model? I assume that some sort of equilibrium will be reached where both models exist, but ti will be interesting to see the adoption rate of the CPA model 1-2 years from now.
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