Paying *only when you get results* is an advertisers dream, and it’s been largely unattainable because it’s so hard to track the true performance of conventional media. Enter the internet age where you can track performance, and now enter Google, with a huge stable of advertisers who will soon be able to use their amazing analytics and advertising tools to do just that.
NYT Summary of Google’s new gig | TechCrunch on Google’s new gig
Google’s pay per performance is NOT a new idea, but it will probably be the first globally significant application of that idea.
Predictions? I think advertisers are going to quickly learn that the advertising emperors have far fewer clothes than they’d thought, and that all but a few great campaigns have positive ROI. Big advertisers have to date been largely incompetent with math, foolishly trusting big agencies who do self serving ROI calculations. This will change, and it’ll be a revolution in advertising.