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Google Pushes Forward With CPA Online Ad Model

Google is pushing forward with its beta of an ad format that could - if it is successful - lead to a wider acceptance of the cost-per-action online ad model. Over the past half year the search giant has been testing a service in which marketers pay only for ads that have been acted upon by consumers - such as a purchase or registration on a web site, Investor's Business Daily reports. Now early adopters are reporting that the model, which would apply to both search and display, brings in greater revenues than the pay per-click format.

Indeed, an alternative to the widely used pay per-click model - the dominant ad model on Google - could convince some advertisers to spend more money on Google ads, says Leah Woolford, COE of U.S. Destination Marketing. (via Investor’s Business Daily). "Google is getting aggressive because … (advertisers) have an appetite and are willing to try new models," she said.

Performics, a unit of DoubleClick, is leading the cost per action initiative.

SoJones, an online fashion magazine has been testing Google's per-action ad program, according to another article in Investor's Business Daily. The site makes four to five times more revenue with CPA compared with CPC, reports Jenise Henrikson, chief executive of Henrikson Media, in the article. "This is due to our quality traffic and high level of engagement with our users."

Bigger Adoption

The program is still in beta form but it does provide hope to those in the industry that would like to see a wider array of ad choices, writes the Domains. "Most in the domain industry [would like to] see a huge growth over the next years from PPC to CPA and the fact that the world’s biggest seller of PPC ads is actively testing the new model can only mean changes ahead for Domain Owners parking their domains."

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