Google has started inviting advertisers for its affiliate network model. This a entry into the affiliate market, Google will definitely take a share of the total market revenue. This is a good opportunity for advertisers looking to pay only for the incoming leads.
However we have to wait and watch how effectively Google can monitor and prevent fraud in the CPA model. Some issues or concerns which arise out from the PPA program are:
1) The publishers are totally unaware of the business model of the advertisers. So it is up to Google to display Ads in relevant sections of the site.
2) For B2B advertisers, where leads generated are very low in quantity & high in value, publishers would be unwilling to display PPA ads as revenue maybe uncertain, inconsistent & less attractive.
3) Publishers have to really work hard to maximize their revenue through referral ads by testing & displaying Ads in the right sections of the site. Many publishers might be unwilling or incapable of doing so.
4) More MFA sites for referral ad revenue would increase… These spam web pages would make promises of advertisers’ product which may not be real.
5) Advertisers have to pay for junk leads. In traditional affiliate model there can be higher control of quality of leads from the affiliate sites.