Bob Tedeshi @ NYT (free sub required) has a good piece on the next generation of CSEs highlighting MyTriggers (CEO scored a Glam Shot with some Elmos+Wiis). The angle of the piece is that as per-clicks get more expensive, retailers will want a per sale (or per action – CPA) model. MyTriggers comes out swinging on that.
The article also hits on the fact that there’s the potential for better selection with the JellyFish, Pronto, MyTriggers, theFind CSE2.0 folks because they don’t only include those merchants that pay and/or the CPA model is more inclusive.
For example, Victoria’s secret won’t do CPC because they get so many clicks sans purchases the economics of CSE don’t and won’t work for them. CPA would be a better solution.
There’s also an interesting data point from comScore I wanted to punch on and will be tracking closely here at CSE Strategies:
“This is still a growing category,” said Gian Fulgoni, chairman of
comScore Networks, which tracks Internet use. According to Mr. Fulgoni,
comparison shopping sites added eight million users from October 2005
to October 2006, a 14 percent jump. But the 62 million people who used
shopping comparison sites in October represented little more than a
third of the nation’s online population of 173 million.”
The article makes the fact that 62m out of 173m consumers go to CSEs (36%) as small, but I think that’s larger than most retailers think about today. Most retailers I talk to see CSE as a 10-15% kind of a focus so it’s interesting to see it’s over 1/3 and climbing. I imagine thanks to the proliferation of CSE 1.0, 2.0 and projects like Google Base, we’ll see this number creep up to 50% over the next 12-24 months.
In any case, congrats to the CSE 2.0 guys for great coverage at the perfect time of year. What did the CSE 1.0 guys have to say? I’ll leave you, as the NYT article does, with this perplexing quote from Shopzilla’s Farhad Mohit:
“I thought cost-per-click would destroy our company, but customers are
very accepting of it,” he said. “And it allows us to make money.”