Google Adsense to Combat Clickfraud with New Business Model?

July 28, 2006 | In Business, Technology |

As clickfraud continues to eat a hole in the online advertising industry, Google Adsense executives are racking their brains to find a solution for this increasingly costly problem.

One possible solution, which has been proposed a number of times, would be a complete change in business model, and a move away from CPC (cost-per-click) marketing. In other words, Google would only charge advertisers (and pay publishers) in the event that a visitor actually made a purchase, completed a survey, or made some other action.

If this type of radical change occurred, clickfraud would no longer be a threat, and Google would save a lot of money on click tracking and pesky lawsuits. Such a move would also have other implications, however, which many supporters probably haven’t considered.

There are already countless affiliate networks operating on a CPA (cost-per-action) business model, with varying degrees of success. None, however, does as much business as Google Adsense.

The very fact that Google can operate a successful CPC program, commanding respect from publishers and advertisers alike, is what makes it unique in the internet marketing industry. If the Adsense program switched to a CPA model it would lose this unique selling point, effectively destroying the very meaning of its brand.

I sincerely hope that such a clever and innovative company as Google will have the sense to stick with a highly functional business model that’s generated billions in revenue over the past several years. After all, they didn’t get to where they are by being lazy or taking the easy way out.