Chitika eMinimalls is a new program for webmasters that allows site owners to monetize their websites on a pay-per-click basis. Released in BETA form (that means it's still in testing) in 2005, the program has created considerable buzz because it uses interactive creatives for a wide range of products available for purchase online, and it has considerable potential for earning significant amounts of money. Webmasters are paid for clicks, rather than for purchases.

While a number of webmasters have earned considerable amounts, particularly early on in the program, there are some important points to consider before jumping in, and investing time and energy re-configuring websites to support Chitika.

Here are some pro's and con's to consider, as of the date of this writing (Late Nov, 2005), but subject to change as Chitika's program evolves.

Pro's

1) Chitika can be configured to display ads for products the webmaster chooses, OR, it can be used contextually, so that it tries to display ads that fit with your content. Initially, Chitika was completely contextual, but, due to the terms of service of its competitor, Google Adsense, emphasis was placed on webmaster choices of keywords and products, rather than automatically choosing product ads. Chitika did this to allow webmasters to run both adsense and Chitika ads on the same pages.

2) The creatives are innovative, interactive, and suffer less from "ad blindness" than other creatives, due to their relative novelty to web visitors. This should translate into higher click throughs (but that's not necessarily the case anymore - see below).

3) Early reports have indicated that the amount received per click for Chitika is HIGHER than for similar ads in Google Adsense.

4) Creatives (ads) can be modified via their code generator so you can choose the colors of the ads to fit your site. So, you can choose to blend them in, or use contrasting colors so they stand out.

Con's

1) In November, Chitika made some changes to their creatives to reduce "curiosity clicks" (low value clicks from the advertiser's perspective). They did this by making the clickable areas much smaller and more restricted. The result has been that click through rates have dropped significantly for many publishers.

2) When Chitika started, it was a contextually based program. From the webmaster's point of view, that meant that one could place the SAME code on each page, and Chitika would display (theoretically at least) ads relevant to each specific page. Contextual ads are a breeze for webmasters to implement, since the code need not be tweaked, or altered for each page.

When Chitika moved away from contextual ads, there were two consequences. First, while Chitika non-contextual ads could be used on the same pages as Google Adsense, it became necessary to target each ad to each page or product, an exceedingly time consuming task for the webmaster. The ads, as they stand now, as non-contextuals, need to be manually targeted. Since there's no easy way of knowing what will work or not work for any specific site or page, it also means that there is constant manual tweaking necessary.

Further, while contextual based ads are still theoretically available, to use them, one must contact Chitika support to get the code. And, unfortunately, in these early beta test stages, their responsiveness to requests is slow, or sometimes even non-existent.

3) Chitika reporting is not real time, and, at least, for the moment, is somewhat restricted in the information it offers. To find out earnings for a Tuesday, the webmaster must wait until at least the Wednesday. That makes tweaking the ads difficult and slow. Further Chitika does not provide final revenue information until the end of each month, when they audit the raw totals to remove revenue from clicks that are from countries outside their scope, repeat clicks and so on. When Chitika runs the audit, you will lose some percentage of your revenue.

The bottom line is that webmasters don't know their actual earnings for a month until (again, theoretically), the end of the NEXT month.

4) Support and information about the program from Chitika, itself, is generally poor. It is, after all, a beta test program, so that's understandable. While Chitika does not permit altering of its ad codes, it has a number of undocumented options that have been discovered by webmasters and posted on the web. Technically, this code hacking (e.g. changing fonts, altering ad displays in other ways) is a violation of their terms of service, although unofficially it seems Chitika has no problem with them. Still the lack of information about what can be done, or is forbidden, and the lack of "official" information from them is a problem.

Should You Jump On Board?

No doubt Chitika is going to evolve and change as it emerges from beta testing. There is incredible potential for their system. But it's potential. Our recommendation is that you join the program, learn how it works, and wait to see how it evolves before you invest considerable time and energy into deploying on a full scale basis. Test it, and be patient as they develop, and see where the program ends up.

Since Chitika will work very well on some sites, and very poorly on others, testing is mandatory. But be aware that, as it stands now, the program really does require a good deal of manual tweaking of code, compared to Google Adsense, or the Yahoo Publisher Network. These latter programs require very little maintenance compared to Chitika, and setup time is much less. In an industry where time is money, this is a critical concern.

Hopefully, Chitika will improve its support and communication with web publishers, work to re-modify creatives to increase click-through rates, and make it easier to use contextual ads again. Of course contextual ads, while easy to use, are dependent on the ability of the software algorithms to select and serve relevant ads. Whether Chitika can do that remains to be seen.

So, Chitika is worth exploring and testing. However, right now, you may find that spending hours and hours setting it up on your websites is not worthwhile. Remember that if you invest the time to do so, you may need to invest additional time removing (or altering) Chitika ads if you discover they simply don't work on your site.

Again, be patient with Chitika, and think long-term. Remember that the program is in testing, and it will certainly continue to change. Those changes (as with already enacted changes) may help you make the program work, OR, they may result in the program being completely ineffective on your websites.

(c) 2005, Robert Bacal, Bacal & Associates. You are welcome to "reprint" this article online as long as it remains complete and unaltered (including the "about the author" info at the end) all links are made live, and this copyright notice and indication of authorship are included.

Robert Bacal is a published author with McGraw-Hill and written several best-selling Idiot's Guides. His newest website - Product Buying Advice For The Befuddled and Smart Consumer (buyingadvice411.com) helps consumers make intelligent choices about their purchases of large ticket and electronic equipment, from mattresses to televisions, mp3 players, and exercise equipment.

Buyingadvice411 also implements Chitika, if you are interested in viewing from the browser's point of view.