Pay-per-action Model for Online Advertising
The online advertising industry is currently based on two dominant business models: the pay-per-impression model and the pay-per-click model. With the growth of sponsored search during the last few years, there has been a move toward the pay-per-click model as it decreases the risk to small advertisers. An alternative model, discussed but not widely used in the advertising industry, is pay-per-conversion, or more generally, pay-per-action. In this paper, we discuss various challenges involved in designing mechanisms for the pay-per-action model, and approaches to tackle some of them.
KeywordsLearning Algorithm Action Rate Payment Scheme Auction Mechanism Brand Awareness
Unable to display preview. Download preview PDF.
- 1.Forrester Research, US Online Marketing Forecast: 2005 to 2010 (May 2, 2005)Google Scholar
- 2.McCollam, D.: Bad Circulation: How often do newspapers and magazines goose their numbers? Columbia Journalism Review Publication (May 1, 2004)Google Scholar
- 4.Lockhorn, J.: Cache Busting: Busted? The ClickZ Network (July 11, 2001)Google Scholar
- 5.Penenberg, A.: Click fraud threatens web. Wired News (October 13, 2004)Google Scholar
- 6.Stone, B.: When mice attack: Internet scammers steal money with ‘click fraud’. Newsweek (January 24, 2005)Google Scholar