Fraud & Issues for Performance-based advertising - Business Affiliate

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There is the potential for fraud in performance-based advertising.

The publication may report excessive performance results, although a reputable publication would be unlikely to take the risk of being exposed by audit.
A competitor may arrange for automatically generated clicks on an advertisement

Since the user's actions are being measured, there may be some concern of loss of privacy.

Performance-based advertising mechanisms induce firms to distort the prices of their goods (usually upwards) relative to prices that would maximize profits in settings where advertising is sold under established pay-per-impression methods. Upward price distortions reduce both consumer surplus and the joint publisher-advertiser profit, leading to a net reduction in social welfare.

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Business Affiliate Resources

Performance-based advertising
Economy Benefits
Income Metrics
Income Pricing
Fraud & Issues

compensation methods in affiliate marketing
Pay-per-sale (PPS) - (revenue share)
Pay-per-lead (PPL)/pay-per-action (PPA)
Pay-per-call
Pay-per-install (PPI)
Pay-per-click (PPC)
Pay per action (PPA)

display advertising
Pay-per-impression (PPI)
Pay per action (PPA) or cost per action (CPA)

contextual advertising
Pay-per-click (PPC)
Pay-per-impression (PPI)

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