Interviews with Digital Media Thought Leaders
Performance-Based Online Advertising (Part 2 of 2)
Podcast Video | Posted by Phil Leigh on January 3, 2008
If you would like to learn about an Internet ad network distributing ads that only result in a charge when the consumer actually clicks on them and completes a transaction, this interview is for you. (Part 2 of 2).
Our guest today is Doug Walker who is the Executive Vice President of Hydra Network. His company distributes targeted cost-per-acquisition campaigns on behalf of advertisers through an online network of quality website, search, incentive, lead generation, subscriber email, and co-registration affiliates.In part two of this two-part interview our guest discusses two case studies that have been particularly successful. One is a company that seeks subscribers to its monthly service providing new coffee shipments once a month. The other is an online dating site.
Our guest’s company provides online ads that only result in a charge to the advertiser when the consumer actually clicks through and initiates a transaction. They commonly refer to such ads as CPA (Cost-Per-Acquisition) ads.
The term “acquisition” is used since it refers to a consumer who is added as a customer or a subscriber. Thus, CPA might refer to the cost of acquiring a new customer for a website that sells merchandise. Or it might refer to the cost of acquiring a new subscriber for a website that charges a fee to each subscriber, or tracks the number of subscribers as figure-of-merit when soliciting sponsorships.
Phil’s Take. The future of advertising shall increasingly focus on accountability and measurability. The principle summed in the axiom, “I know that half of my advertising expenditures are wasted, I just don’t know which half”, will lose its validity. While I don’t know whether Hydra Networks will be one of the winners, I was impressed to learn that they were almost immediately profitable after being founded over four years ago.
Categories: Podcast Video
Tags: advertising, digital media, Doug Walker, Hydra Network, online advertising, Performance Based Advertising, Phil Leigh, web advertising
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