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Am I understanding ......... "Performance Based Advertising"?

< "By the end of the year, we are targeting 20% to 25% of our revenues to come from our performance-based advertising offerings.

We are exclusively targeting direct advertisers and their agencies operated outside of the
[Tier One?] search engines." >

[February 8 2011, 5:00PM PST - LookSmart, Ltd. Fourth Quarter 2010 Conference Call]

....This (hopefully) will be as a result of Looksmart's own marketplace (as we have also been recently told - above), that will now focus on expansion of CPV (cost per visit) and CPA (or, cost per action), with those areas being the initial 'performance based advertising' offerings.

The following point made (from within an article - by a person who I feel, should've known better), has caused a barrage of hostile-type "comment" from players within the industry, over here in OZ ....

< “Media agencies and marketers have never had so much choice and yet so little time to engage with individual digital publishers.

Unfortunately these limitations can often result in larger network deals delivering inappropriate brand fit,” she said.

“I’ve seen some terrible examples of Bunnings display banners placed on an edgy music site targeting predominantly 16-24 year olds.

This not only cheapens the environment and deters users. It will also be completely ineffective in delivering results for the client.

Like my own (CanadaPost/CentrSource) error, is this yet another case of ..."Fools rush in where angels fear to tread", maybe?  :)

Comment #21 (from *YAWN* ), says it all:

#.. Hi Jade,

That is a very interesting point you make regarding   ...“ineffective in delivering results for the client” however it could be that the agency has bought a performance buy via an ad-network on either a CPA, CPC or CPL model which guarantees the client a given performance metric and minimises their risk.

But as the product you’re representing is itself an ad network I’m sure you already thought about that before making the comment.

Nice not doing business with you...#

I guess a CPA buy (in a RTB auction marketplace), can/will at times and is 'designed' to find it's 'targeted user' (on/across all remnant inventory submitted), that may be totally remote to a site's theme or, context.

This director of Sydney-based Push and Play Digital, described as being a specialist music, entertainment & lifestyle ad network (Jade Harley), then gets further 'in the mire' again I feel, with her (#12) reply, in the comment's section.

....."I’m referring to larger networks that represent sites that don’t fit into the rest of their network and place ads across the network without really assessing the suitability, this is how ads appear that do not appeal to the users."

Am I not fully understanding "performance based advertising"? - Do please correct me if I am wrong.


Disclosure: Long LOOK and happy to be so, too....