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Google Launches Cost Per Action AdSense
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."
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?
Working at a company that manages pay-per-click ads, pay per action is something we've been waiting for a long time to come over the horizon. I'm so glad Google's rolling it out, even if it is only on a test basis.
"Clicks" are abstract concepts and very difficult to sell to less tech-savvy business people. They want a better measure of their return on investment for their ad campaigns. A number of companies offer call tracking, which is easier for businesses to grok . . . but a call != a sale . . . or even an actual lead.
This is a welcome step in the right direction, IMHO.
This is awesome news for me. This means I can spend more time at home without pants!
Every time Google comes out with a new way to pay people like me to do advertising, is almost an entire additional month that I can spend at home without any pants on. Who needs a recruiter, when I don't ever have to leave the house?
Zhrodague.net - I do projects and stuff too.
That's exactly what I was thinking.
With a pay-per-click I don't really care what gets advertised on my site as long as its relevant to the content of the site (which, thanks to Google, it is). I'm getting paid for sending folks there way.
With a pay-per-action system, I'll have to care about what gets advertised on my site, because if no sale is made, I don't make any money. So I'm not going to want to advertise (say) $3,000 hottubs, because even if it does result in a sale, its probably not going to be purchased immediately after follwing my link. Likewise, I'm not going to want to advertise for sites that make it difficult to make purchases or don't effectively sell their products.
And when you think about it, why shouldn't I be paid for helping spread brand recognition, regardless of the immediate results? Billboard space isn't leased based on the number of people who make a purchase after viewing the billboard. It is leased based on the number (and demographic) of people expected to see it.
Please, the man has no pants on. Please don't bring up "squirting" things...
I am defenseless. Use your button. Mod me down with all of your hatred.
It already does work better than per-click for many reasons. The porn industry switched from per-click to per-sale, for the most part, about 5 years ago. Of course, as always, the porn industry online is ahead of the curve.