Abuse of Cost Per Click (CPC) Marketing?
This model provides a win-win situation to publishers (websites), ad-networks (like Google, Komli etc) and advertisers (sellers). Advertisers pays to the ad-networks only when a visitor (prospective buyer) clicks on the advertisement (thereby presumed he expresses interest in the advertiser’s services) on the publisher’s website. Thereby justifying the advertising cost as paid by the advertisers. On the same hand ad-networks are in position to calculate and display the ROI and compensation for publishers.
Now in a fair game, a visitor will click on the advertisement to know more about the services and contact the buyer subsequently (If he is interested). On every such click publisher get paid certain amount by ad-networks and advertisers are charged for that click.
Wonderful concept, so where is the abuse?
Now few advertisers are abusing the ecosystem by removing/reducing the requirement to click the advertisement in order to know the contact info etc. Thus avoiding the charges payable to ad-network and subsequently the publisher.
This short-term strategy will surely have long lasting impact on the ecosystem of publishers, advertisers and ad-networks. I am sure ad-networks would have all the systems and checks in place to avoid such content going live in the advertisement. Ad networks would spend more energy on building more checks to stop abuse, which would have otherwise gone in more constructive activities. All said and done, I believe there is an equal responsibility to be shared by the advertisers also for not abusing the product.