Tuesday, July 06, 2004

Forget pay-per-click (PPC)--pay-for-performance is in (PFP) 07-06-04

MediaDailyNews 07-06-04: "Forget pay-per-click (PPC)--pay-for-performance (PFP) is all marketers want to hear about from their advertising and publishing partners these days" "Pay-for-performance affiliate marketing in the real world has a name. It's called commissioned salespeople, [and] they're the most productive people in your stores," noted Macys.com President Kent Anderson. "Our fastest-growing areas in the stores--our best-run stores--are typically commission-oriented, and I think there's an analogy [to affiliate marketing] there because you have a highly motivated sales force...However, there is one pay-for-performance sales channel that received nearly unanimous disapproval. Panelists agreed that the growing problem of online fraud, spyware, and spam are deterrents to the growth of online commerce, and could eventually keep consumers from shopping online. Because of its proven effectiveness as a low-cost direct sales channel, online retailers are among the heaviest users of adware and spyware..

Forrester forecasts 25 percent growth every year over the next five years for e-commerce; Johnson says she is "incredibly optimistic" about the next 5-10 years.

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