Job Search Giant Indeed Stops Selling Pay-Per-Application Job Ads

In a significant shift back to more traditional advertising methods, Indeed recently announced its decision to stop selling pay-per-application job advertisements effective today, December 18th. This move marks a return to the cost-per-click (CPC) model, which is more widely understood and simpler to manage. Indeed’s decision reflects a strategic realignment with traditional online advertising practices, diverging from the more complex, newer model of pay-per-application.

Reverting to a Traditional Model

Indeed’s pay-per-application model, a more recent and complex approach in the realm of digital job advertising, required employers to pay for each individual job application they received. This model, while offering a direct link between advertising spend and application volume, presented complexities in terms of budgeting and predicting recruitment costs. By moving away from this model, Indeed is embracing a simpler, more widely adopted CPC strategy.

The Simplicity of Cost-Per-Click

The shift to a CPC model means employers will pay based on the number of clicks their job listings attract, rather than the quantity of applications. This approach offers greater simplicity and predictability for small- and medium-sized employers, making it easier to manage advertising budgets and forecast expenses. The CPC model has long been a staple in online advertising due to its straightforward nature and ease of use.

Comparing with Other Platforms

While Indeed is taking a step back to a more traditional model, other platforms, such as College Recruiter, continue to offer a mix of both pay-per-application and cost-per-click advertising options.

College Recruiter’s Diverse Offerings

College Recruiter, which specializes in connecting employers with students and recent graduates, provides both the newer pay-per-application model and the traditional CPC model. The pay-per-application approach can be attractive to employers seeking a direct correlation between their spending and the number of applications received. Meanwhile, the CPC model offered by College Recruiter caters to those preferring a more familiar and straightforward approach.

Implications for the Job Advertising Landscape

Indeed’s decision to revert to the CPC model signals a preference by small- and medium-sized employers for simplicity and predictability in the job advertising space. This move might influence the industry’s approach to digital advertising, highlighting the value of straightforward, user-friendly models to certain advertisers, while other players in the industry, such as College Recruiter, continue to offer products that shift risk away from the advertiser and to the job board, which many larger and/or sophisticated advertisers prefer.