I’ve been looking all over for more info on Google’s new CPA model and how it will affect those CPA companies today that seem to make up the bulk of affiliate actions. Some are saying they’re up the creek w/o a paddle. Take, for instance Tech Crunch’s Arrington:
Affiliate marketing networks like Commission Junction and LinkShare are screwed.
He seems to expect the Google CPA decision will make their mark heavily, and quickly. In fact he’s saying that Google’s news, though expected via the rumors we’ve all been hearing, has already made quite a dent in ValueClick’s stock yesterday. ValueClick is the parent company of CJ, by the way. I think he’s right, as ValueClick’s stock has continued to fall today.
Of course, there’s room for all, and CJ and Linkshare have built a following of loyal users (God only knows why). However, I have a feeling that the casual affiliate bar has been lowered, and many will flock to CPA ads on Google not even knowing that they are now an affiliate. I suppose it’s good for those of us in the industry, to increase our numbers, but then again I’m not so sure. I rather like the fact that affiliates are a tight group and we’re very concerned about the industry. Will this new influx of casual (even unaware) affiliates change our numbers?
Will Yahoo soon follow suit? Lots of questions, very few answers.
**If you have great insight on this and have blogged about it, let me know and I’ll include your link on this post.