Google to offer "Cost-Per-Action" ads

  • ablaye
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Post 3+ Months Ago

Google is currently testing a new ad model, the "cost-per-action" ads. Basically, the advertiser no longer gets charged for clicks, but rather when the clicks result to an action that the advertiser is seeking such as purchases, membership sign-ups, etc...

I absolutely would love to sign up for this program as I would only be charged for traffic that turns into sale leads.

The current Pay-Per-Click model is flawed as I believe there is too much fraud in this and advertisers such as myself are loosing a lot of money in fraudulent or useless clicks.

What do you guys think? Would it cost too much to the advertiser?

More on this can be found in this press release: http://www.prweb.com/releases/2006/6/prweb403094.htm
  • WebFreedom
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Post 3+ Months Ago

I think it's a good idea, and I'll probably explore it somewhere down the road. I believe they're currently running the beta program, so you may want to try and get in if you're really interested. :D

Sam
  • mac5150
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  • mac5150
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Post 3+ Months Ago

Definately not a bad idea but I'm wondering how it would work for people who sell services. I have a client that uses adwords but they aren't selling anything online but using the web as place for clients to get information and ultimately call to make reservation and such. I don't think the "cost-per-action" would work for this web model but it's good to have choices.

I am wondering how much this would cost. I would think that the pricing model would be different and you would be charged more per successful referrel than per click.
  • WebFreedom
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Post 3+ Months Ago

That's a good example of a model for which CPA would not be a good fit, but I think it's probably the exception to the rule. I don't think the CPA model is intended to replace AdWords - simply another option for those who seek it. I would guess that the cost for CPA would be higher, as well - but, theoretically anyway, it should result in a larger "payoff", that being sales, traffic, publicity, new members, etc.

Sam
  • justice
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Post 3+ Months Ago

What a good idea! I bet you they charge more for this advertising. I would still go ahead and use it though.
  • Ganceann
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  • Ganceann
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Post 3+ Months Ago

Well, no matter which model is used if it generates any revenue for the company using it ( above costs incurred) then it is likely to be used to some degree.

There is no one special model that would fit all types of industries ... much like adsense and websites, it is a case of what works for one site may not work for another...

No doubt CPA will be extremely useful for some types of websites and publishers, but it will make no impact on others.

Overall, if it would help me then I would be interested, if it didn't then I wouldn't... simple as that :P

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