Meta-search jobs site Indeed.com has introduced a CPA/PPA model (akin to lead gen here) where advertisers pay only for qualified “actions” (here job applications or contacts). Indeed is seeking advertiser attention and this sort of innovation is much less likely to come from category leaders such as CareerBuilder, Monster or HotJobs.
Putting aside affiliate networks and lead gen, search engine SNAP was the first (in my memory) to introduce this model as an alternative to PPC on a mainstream consumer site. Subsequently others, including shopping site Jellyfish, have done so. Google also recently introduced CPA.
There’s an argument here that CPA/PPA will only gain momentum; however that’s not necessarily so. Borrell Associates, in its recent report on the Automotive vertical indicated that lead gen programs were losing favor. And Jellyfish triumphantly proclaimed that their model was game-changing and would initiate a “major shift” in online advertising when it launched. It has not.
That said, I still think that CPA may bring valuable innovation to certain areas. Accordingly, here’s my recent related post on CPA and local.