2006-08-04

Value Per Action, Attention and the liquid, efficient marketplace

Von roger @ 02:45 [ KIT ]
Ichiba related. New ideas every day... but what are the memes that are truly disruptive and will find a fertile ground to blossom?
At Jellyfish, we want to pioneer a new form of search advertising we call Value Per Action. Instead of charging fees when you click, we charge our advertisers only when you actually buy, and we share at least half of this fee back to you as cash back. In other words, we connect you directly to the value of the advertising. Instead of measuring how much money WE make when you click, we measure how much value the advertiser is willing to pay YOU for your sale. With VPA, the advertising value of your attention becomes transparent (you can see it in the form of cash back) and changes from annoying advertising into something that actually lowers your end price.

Traditional advertising needs intermediaries
People who have something to communicate need people to send that message to. It may be a commercial, a billboard or an email, but nonetheless they have something to say. People who have needs need people who have something to tell them. Sometimes they know they need to hear a message and at other times they don’t. What is universal is that the people who have something to say don’t pay the people who may or may not need to hear it, they pay ABC and Google and the New York Times. Traditional advertising can be seen as inefficient because it uses intermediaries to communicate messages instead of taking directly to the people.
Hmm, the intermediaries have also something to say or to offer a service (like search), that's why they have the attention. The problem of traditional advertising is more that it is not measurable if it gets enough attention for the price it pays and if it's worth the attention. Pay Per Click is only a first small step. And Value for Action does not really resolve the attention question. Somehow all these ideas seem to answer only parts of the question.

See also:
Three books about the attention economy


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