Google has made the next logical move after pay per click and pay per call. They have now introduced pay per action. This means that you pay not when someone clicks on your ad but when someone actually completes an action defined by the advertiser. Advertisers can choose to pay when a user makes a purchase, signs up for a newsletter, or completes any other clearly defined action that they choose.

This is very similar to the affiliate marketing model, where the merchant pays a publisher only when a defined action takes place.

As always Google has gone a step further to ensure that the cost per action is automatically worked out by their system. They’ve said that advertisers should have received more than 500 conversions through CPC or CPM campaigns in prior 30 days to be eligible to participate in this pay per action program. This means that they have enough data to calculate the best performing keywords, campaigns and cost per conversion that you’re incurring.

I may be wrong, I guess there may not be a huge change in the cost incurred by an advertiser if he chooses either pay per click or pay per action, all other factors remaining equal.

Bookmark/Search this article with:

| | | | | | | |

This entry was posted on Wednesday, January 9th, 2008 at 7:02 pm and is filed under Pay Per Click. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.