Thursday, May 22, 2008

Microsoft adopts cost per action model for search advertisements

Despite the rebate, I think the bigger issue is Microsoft(MSFT) adopting a cost per action business model. Advertisers would be willing to pay more for advertisements if they knew their advertisements can be linked to getting sales. As a Google AdWords user, although I pay a small amount per click, I do not like paying for many visitors who leave the page immediately, and I would prefer if I had to pay only when someone bought a product.

Microsoft Offers Rebates to Shoppers Using Its Search - New York Times

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