Google has invited advertisers to become beta testers for its new pay-per-action online ad system - a move that looks very much like an entrance into the realm of affiliate marketing.
Participants in the PPA system are able to add lists of intended actions to regular ads, with ad impressions only paid for once a user completes on those activities. An advertiser pays Google only if an individual subscribes to its newsletter after clicking through to its site, for example.
Google's pay-per-action product manager wrote at the official AdWords blog:
"You'll define an action, set up conversion tracking, and create ads that publishers in the Google content network can then choose to place in new ad units on their site.
"You define a fixed amount that you'd like to pay for a completed action based on the value of that action to your business."
The beta test is currently only open to US advertisers, however.
The emergence of PPA comes as advertisers look for more guaranteed returns on their online advertising expenditure.
Stung by instances of click fraud, in which companies make false clicks on rivals' ads to eat up their advertising spend, the model represents additional certainty for advertisers and so a stronger likelihood of Google's continued dominance in the online ad space.
Posted 21 March 2007 12:44pm by Robert Andrews with 3 comments
Tags: Google, Google Adwords
Topics: Online Advertising
Sectors: Publishing, Media & Entertainment
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Graham Charlton
Online Advertising
10:28PM on 21st March 2007
My first thoughts are;
a) Advertisers will have a very tight creative control, which may work for some, but will be restrictive for others
b) The model for renumeration may not give much flexibility and could prevent the popular tiered incentive programs
Early days though I guess....
7:55AM on 22nd March 2007
I agree with Gordy, I'd rather have Dashboard then Games... or even a Youtube integration.
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CEO at P2 Internet
9:15PM on 22nd March 2007
I think that this move of Google will result with the introduction of CPA advertising model as the mainstream, in years to come. In addition, this will probably partly influence the actual classic marketing measurable movements (like Marketing Operations Management). It will be very good for an increase of an online marketing budgets.