Even though the industry has only begun to embrace the alternative online ad model of cost per action, some companies are exploring other ones as well that are variations along a similar theme: the advertiser only gets paid when the customer signals clear interest that goes beyond the click.

Not surprisingly given its interest in cost per action, Google is among those firms looking at alternative models.  Its head of media and platforms, Barry Salzman, predicts that online advertising for vide will shift from the current CPM model to a "cost per view" in which advertiser only pay for those ads that are watched. (via Beet.tv) That is the premise on which its new ad unit for YouTube, TrueView, is based. It gives visitors a choice to click on one of three ad selections as a preferred pre-roll.

Cost Per Engagement

Along a similar theme, Diageo recently experimented with a campaign based on a cost-per-engagement model. (via New Media Age).

A branded content hub with the theme "evenings in" game users a choice of movies to watch for free and the ability to create music playlists and their own TV guides. The provider, Mail Online receives more in compensation when users watch a movie, create a playlist or enter a competition after viewing a Diego ad, NMA says.

Niche Categories

Vendors are also developing metrics that are tailored to their increasingly specialized ad formats. For example,TeleNav has launched a drive-time search and navigation mobile advertising platform that provides providing advertisers with such metrics as "Drive-to Rate.” This captures the number of users who viewed an ad and chose to drive to the advertiser's business location.