Wednesday, June 21, 2006

Google goes CPA - Hello adverse selection

Read an interesting article in the WSJ today about Google testing out CPA Adwords with a select group of advertisers.

Philip Remek, at analyst at Guzman & Co. postulated this is the way to eliminate click fraud, where in reality the could cause adverse selection for the non-cpa advertisers in the mix. People generating fraudulent clicks will quickly be identified, while non-cpa with no real post-click measurement could get hammered.

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