Snap Raises $10M - Trumpets "Cost Per Action" Model

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Source Title:
Search engine pioneer raises $10 million for latest quest
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Good story in the HT about Snap.com raising $10M in Venture Capital from Mayfield...

As Snap gears up to shift out of test phase, the search engine's parent company - Pasadena-based Perfect Market Technologies Inc. - has raised $10 million in a venture capital round led by Mayfield, a Menlo Park firm. Gross and Snap CEO Tom McGovern intend to use some of that money to spread the word about a system that he believes can deliver better value for advertisers.

Gross is among those who believe click fraud is a big problem. He aims to change things with a "cost per action" system that only charges ad commission when a purchase is actually completed.

"I believe the commercial side of search will evolve toward cost-per-action in the next five to 10 years," Gross said.

Snap haven't particularly grabbed my attention of late, but that was pretty interesting, and with a few $$$'s to play with it might be worth taking a little more notice now I think...

Comments

FWIW

It's not the IHT, it's the Herald Tribune, located in Sarasota, FL.

hehe, thanks!

hehe, thanks!

I must be thick

http://www.snap.com/stats_financial.php

On that basis I am worth about $4 trillion.

>> worth about $4 trillion

Really? Lend me a tenner 'til Tuesday then

Heck with it, lend me £50 billion. You ain't gonna miss it...

I ran accross them running

I ran accross them running PPC on Google the other day. They've got to be buying most of that traffic. Amazing they can get only $0.002 USD per visitor, and they are paying $0.05.

Sure it's losing money, but just think.. "VOLUME"

Is it 1999?

Seems very "dotcom" to me .. what am I missing?

I can see how there will be advertisers interested in the CPA model but not that search engine. And they can already do per transaction deals with affiliates..

Snap

I always did like Snap. I even like the idea of performance marketing (pay per action).

But I don't see how this venture is going to make a profit, at least in the short term.

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