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Google’s CPA Network vs. Affiliate Networks

6th July 2006

In the new Google CPA (Cost-Per-Action) offering, Google charges the advertiser with a % markup on the cpa…just like traditional cpa networks. And, it’s obvious they are using their adsense network to get distribution.

However, I see some initial weaknesses in their ability to compete with the traditional CPA or affiliate networks like cj.com, linkshare, azoogle, etc. The traditional CPA networks let the advertiser have more control and relationships with the actual affiialtes (sending promotions, optimization tips, newsletters, contests, etc). That relationship has a direct correlation to performance metrics for both the advertiser and the affiliate.

Even though google will have the distribution, many other traditional affiliate networks have a better optimization model & an experienced affiliate base that make it work… that’s something Google doesn’t have. That is what will ultimately entice advertisers. Performance. Plus affiliate marketers usually seek higher payouts, and thats what the traditional cpa networks offer.

Traditional affiliate marketers want/need more control than the Google’s new CPA network (Content Referral Network) is offering. Affiliate marketers want control like product-specific landing pages, choice of creative, choice of promotional offers, choice of image sizes, etc.

I’m slamming it, huh? Well, the bottomline is that Google’s new CPA network provides advertisers the safety in a deeper metric that eliminates click fraud, will be fun to try ( like every other new google product), and is another digital channel to add to the marketing mix.

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One Response to “Google’s CPA Network vs. Affiliate Networks”

  1. avi Says:

    its not surprising that google is going cpa. surely google has a significant disadvanatage over the other affiliate networks now, being new to the game, but every google product evolves over time. it will surely take time for google to catch up in complexity to a CJ, if they every do so - just as it will take time for google checkout to develop into a serious paypal rival. lets not forget that many of googs products flop, as their strategy seems to be to throw everything at the ceiling and see what sticks.

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