Subscribe RSS
Comment RSSCPA Doesn’t Work Says Peter Bordes
Written by Murray NewlandsJune 25, 2012 # 5:47 pm # CEO Interviews, Specials # 10 Comments
Peter Bordes isn’t shy about his opinion about the changing performance marketing industry. AS the Chairman and Founder of MediaTrust, he says that CPA isn’t really a proper pricing for inventory. The MediaTrust Performance Exchange is the next evolution of performance marketing according to him, and that publishers and affiliates need to stop thinking about CPA and CPL but more about volume and understanding their inventory. Interesting analysis of what he believes is a necessary change in the industry. We think a few people might disagree with him, so watch the interview and leave comments. Is he correct in what he’s saying or has he gone off the deep end?
—-
Sponsorship
One of the reasons that networks are failing is lack of proper fraud protection. Learn more about how you can protect your network from fraud at CPADETECTIVE.
Written by Murray Newlands
Murray Newlands is the Host of PMI-TV. Murray is a speaker at major events such as Affiliate Summit in Europe and the US on social media marketing, inbound marketing, content marketing and affiliate marketing. He is the founder of the Affiliate Marketing Awards which takes place each year during ADTECH SF.
There are ten comments. Join the discussion.
Share/Bookmark this!
CPA is Dead! Long live CPA!
While Peter uses many buzzwords and acronyms to make it seem like he’s explaining a brand new concept that will revolutionize the industry, the ability for an advertiser to change per-lead rates based on publisher quality to ensure profitability has existed in both CPA and affiliate networks for many years.
This isn’t the first time I’ve heard arguments for a different pricing model in the pay-for-performance industry, nor will it be the last. However, the bottom line will always be the same. An advertiser will pay X dollars for a lead that’s worth X dollars to them. Whether that’s broken down by impressions (CPM), clicks (CPC) or leads (CPA) is irrelevant. A dollar is a still a dollar whether it’s 100 pennies, 10 dimes or 4 quarters.
The CPA model is not dead, nor is it dying. The experience of 8+ years of running a network and dealing with hundreds upon hundreds of advertisers has shown that most advertisers are most comfortable with the CPA pricing model. It’s easier to measure, reduces their financial risk, and simplifies their fraud management (yes, there is fraud in the CPC and CPM models).
After watching this interview, I’m left with one nagging question. Why is the president of the Performance Marketing Association constantly attempting to undermine the value of the CPA model, one of the cornerstones of performance marketing?
I’m with Steven that fraud can be even more rampant with CPM or CPC pricing models. CPA is a great, lower risk, metric for performance advertisers.
When we work with an advertiser we often have different CPAs depending on partner/source to reflect quality of traffic anyway, so I’m not sure how switching to CPC or CPM model is going to change much of anything.
Angry Russian recently posted..Hello world!
As an advertiser who tested this exchange I see the potential. Without going into detail I will say the test proved unsuccessful. For the publisher it would probably be very profitable. However I see little attention paid to the needs of the average advertiser after the recruitment phase. In contrast, my company has flourished in the CPA industry to the benefit of many networks and publishers. Maybe version 2.0 will be better.
Cpa is all spam or scam
Either it’s social networking spam or fake ads promising results that are not attainable
Not one person can point to an ad run trough a Cpa network (I’ll say. Some email is honest) that is honest that actually works and gets ran out there it doesn’t exist. CPA advertising is either a scam or spam or both, eventually users get wise to it
Don’t fool yourself CPA didn’t die the scam was just exposed bringing it overseas just shifts your cards but you’re still playing the same hand
Murry, Nice format for your videos. What are you using for your studio look? Is that Visual Communicator?
mediatrust not sending payouts since last month. maybe its another azoogleads (epic) issue. and no one answering the phone nor emails. WOW!
It’s quite funny to see Mr. Bordes putting this post up while he’s busy stiffing his affiliates and bullshitting about an “acquisition” that caused funds to be frozen. He should take some of that family radio money and pay his fucking affiliates instead of bullshit on the blogsphere.
Harrison
LOL no joke…
“CPA doesn’t work” – says the company who is failing to pay it’s publishers LOL
I’m doing fine with AdKnowledge…
hahahaha shut up Peter Bordes! pay your publishers than making this kind of statements. your a funny guy you know that LOL