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Google Launches Cost Per Action AdSense

Posted by ryuzaki0 on from the tweaking-and-peaking dept.

rustybrick writes "Google has launched an invite only test of CPA (cost per action) AdSense ads. So instead of getting paid per click or per impression, you now can get paid for an action, such as a sale or lead referral."

4 of 147 comments (clear)

  1. Advertiser Fraud by numbsafari · · Score: 5, Interesting

    I worked for a company back when no one cared about making money and we were looking at building something similar. One of the chief concerns we had at the time was how to prevent fraud on the part of the advertisers: ie, if a user clicks through and ultimately makes a purchase, did the advertiser properly track that and then report it back?

    There are a couple of ways publishers can also loose out: for instance, if a user clicks through but doesn't make a purchase only to return to the advertiser's site the next day or week and make the purchase, will the publisher be compensated appropriately?

    This is definitely a great opportunity for publishers and advertisers by increasing quality over quantity. However, there are a lot of potential pitfalls for the publisher.

    Will google be able to properly intermediate? or will they tend to side with their big advertisers when issues/complaints arise?

    1. Re:Advertiser Fraud by panaceaa · · Score: 4, Interesting

      If a point-of-sale site pushed their transactions through Google's new GBuy service, advertisers would have no way to hide actions resulting in revenue. Perhaps the invite-only aspect of the launch is designed to focus on businesses that are planning on using GBuy?

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    2. Re:Advertiser Fraud by Breakfast+Pants · · Score: 4, Interesting

      Other obvious though(because surveys might be a bit too intrusive, and unreliable): simulate paying customers in a statistically relevant way yourself and see if the sales are getting reported.

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      WHO ATE MY BREAKFAST PANTS?
  2. Re:That's where the money is. by TubeSteak · · Score: 4, Interesting
    I'm sure that Google would deem a direct referal to a sale to be worth more too.
    Google would, but their valuation will be reflected in the minimum price, not the market price.

    What's curious is that they're putting these ads in a separate network, such that you can put both types of Google Ads in a website.

    It'll be interesting to see how the mix works out.
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