The Risky Business of Pay-Per-Click Advertising
14th Nov 2006, 12:29 GMT
Paul Kedrosky submits: The WSJ took a small business perspective on click fraud yesterday, doing the usual anecdotal empiricism thing of citing a few small-business owners who think they have been the victim of fraudulent clicks. Perhaps more worrisome for the pay-per-click [PPC] business is that the WSJ quotes approvingly someone who says that cost-per-action ads are a possible replacement. There continues to be more noise here than substance. But without a loud, public defense at some point from Yahoo (YHOO), Google (GOOG), et al., the real risk is that the PPC search vendors gradually lose a perceptual default decision, with it becoming "a given" that pay-per-click ads are risky business, perhaps too risky for many companies. Related Articles Read more articles by Paul Kedrosky Read more on the symbols GOOG, YHOO Subscribe to the symbols GOOG, YHOO Read more on the themes Internet Advertising Research Stocks and ETFs Type in stock symbol to get opinion and analysis, earnings call transcripts, quote and chart:
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