Google's Pay-Per-Action, a Threat to Affiliate Networks, such as CJ or AffiliateBOT?

[Manny]

As you’re reading this, you would be expecting that numerous news covering Google’s Pay-Per-Action (PPA) product for AdWords.

The model is restricted to AdSense for content in the U.S., this is a significant expansion of the CPC (cost per click) model, with advertisers having the option of paying when a customer buys a product, signs up for a newsletter, or completes any other task on the web site of the affiliate.

Here are the basic questions I would like to raise:

• A design that allows advertisers to offer a reward based upon a sale or sign-up?
  
• A design that allows publishers to select text, flash or images when displaying advertisers incentives?

Do these things mean something to the Affiliate Networks?

Personally, these sound like an evident threat to the existing Affiliate Networks such as Commission Junction or LinkShare, or even AffiliateBOT? Google has just entered the affiliate marketing business, with the optimism that they can do affiliate marketing better than other affiliate networks.

Now, tell me your opinion.

[psyche18]

I personally think that although in the beginning Google may pose an evident threat to affiliate networks (and in the end, will probably end up with a decent share of the market), affiliate networks will still manage to survive if they find their niche.

It's been said before, but I'll say it again: Google wins all in terms of technology and their name, but smaller affiliate networks can provide services and relate to their clients in ways that Google can't. And as service, in the end, is what affiliates really require (especially those who aren't tech savvy!)