A great article from Dennis Yu on TechCrunch as the spammy situation over at facebook starts to unwind. If you happen to have websites that host advertising and/or use AdWords, a nice bit of confirmation from someone deep in the online ad game appears in the comments:
Most performance marketing products/services aren’t profitable on the back-end if they are paying out $6.00/CPMs, but the shady offers and the way they are marketing can be profitable.
So if you don’t have a pricey high-margin product just use some shady techniques and catchy adverts (and data from Facebook Profiles) to create the margin, thereby pushing out the lower margin players and leaving the room open for more crap. Nice.
Another little gem in the comments. The comments are really quite good…
…If you want to provide the pristine user experience, you’re taking a massive hit to your earnings, maybe can’t pay your mortgage, or whatever. How do you feel about that?
