Lead-Gen

The CPA network space is in tumult. If your favorite CPA network isn’t dead already, it’s probably refinancing, merging or crouching in a defensive posture.

ValueClick this week announced the divestiture of their lead-gen business unit, Web Clients. The stated reason is that ValueClick wants to stay focused on their online marketing services and technology businesses. That’s fair enough, but a look at the history of ValueClick and Web Clients raises questions in the minds of the curious.

Over the last five years, almost all of the topics I’ve written about focus on some aspect of performance-based advertising. My fascination with the subject stems from a desire to understand the role performance-based ads play in the broader ecosystem for advertisers, merchants and affiliates.

New media such as blogs and social networks have opened vast territory for information dissemination, networking and connectivity. Due to their low costs, every “netizen” with an opinion can set up a Web-based soapbox from which to broadcast to the world. As a result, like-minded communities of writers and followers have sprung up around any number of topics large and small: from politics to film, video games to parenting tips.

Cost-per-action networks are all the rage today. But what will it take for a network to win with 400-plus competitors? And how does a network keep ahead of the curve (and the FTC) while building its publisher and advertiser base and fending off tracking and fraud issues?

These are the tough questions that CPA networks face.