Wow! I just came across this news on Linda’s Blog and it is sure exciting — Google is testing CPA (cost-per-action) ads on AdSense!

This is the same model as that offered by Chitika and guess who is it going to hurt the most? CJ!

From the Internet Stock Blog by David Jackson. “Let’s not mince words. This is Google’s ValueClick (VCLK) killer. Google has greater resources than ValueClick, a larger advertiser base, and the advantage of being able to offer publishers a full range of ads based on page views [CPM], clicks [CPC] and now actual purchases or leads [CPA]. Google can translate the performance of all these ads into “effective CPMsâ€?, allowing publishers to compare and optimize for whichever type of ad produces maximum revenue.

This morning, soon after the market opened, I shorted ValueClick. Stock buyback or not, this spells the end of ValueClick’s Commission Junction business.”

However, I am shit scared. If Google becomes a major player in Affiliate Marketing then we all will lose a revenue stream which we could use to buffer ourselves against being too dependent on Google via AdSense.

CJ — tighten up your belts and clean up the JS links mess! You got a big battle ahead and this time I am on your side rather than Google’s.