Comments on: The Future of Advertising: Markets in Attention? http://www.businesspundit.com/the-future-of-advertising-markets-in-attention/ Entrepreneurship, Startup Companies and Business Philosophy Mon, 23 Nov 2009 02:54:25 -0600 http://wordpress.org/?v=2.8.5 hourly 1 By: laurence haughton http://www.businesspundit.com/the-future-of-advertising-markets-in-attention/comment-page-1/#comment-202 laurence haughton Fri, 18 Nov 2005 19:53:06 +0000 http://www.businesspundit.com.php5-6.websitetestlink.com/?p=2374#comment-202 Some of this I can understand but some is over my head. Can you tell me how this is true? "The emergence of pay-for-performance advertising online has effectively transferred the risk away from the medium. With PPC, Internet media no longer has to convince advertisers to trust its ability to perform as effectively as other media (Cable, TV, Radio, Print…). The quality of the commercial transaction is self-evident to the online advertiser, who now inherits all the risk from the publishers." How does pay for performance reduce the risk of the medium? I see how it reduces the risk of the advertisier. He or she doesn't have to pay anything for the 50% of ads that don't work. But the medium only makes money if their ads drum up a lead. And if those leads don't convert then the price a "lead" is worth goes down over time. I love the model of pay-for-performance but it implies "no pay for no performance." How does this reduce the risk of the media? Some of this I can understand but some is over my head.
Can you tell me how this is true?

“The emergence of pay-for-performance advertising online has effectively transferred the risk away from the medium. With PPC, Internet media no longer has to convince advertisers to trust its ability to perform as effectively as other media (Cable, TV, Radio, Print…). The quality of the commercial transaction is self-evident to the online advertiser, who now inherits all the risk from the publishers.”

How does pay for performance reduce the risk of the medium? I see how it reduces the risk of the advertisier. He or she doesn’t have to pay anything for the 50% of ads that don’t work. But the medium only makes money if their ads drum up a lead. And if those leads don’t convert then the price a “lead” is worth goes down over time.

I love the model of pay-for-performance but it implies “no pay for no performance.” How does this reduce the risk of the media?

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