March 23, 2007; 02:19 AM
Google announced on Tuesday a limited beta test of
pay-per-action advertising, a new pricing model that allows advertisers
to pay only when predetermined actions are completed on their site. The
pay-per-action model gives advertisers the option of paying when a
customer makes a purchase, signs up for a newsletter, or completes any
other clearly defined action the advertiser chooses. Advertisers have
the freedom of defining the value of a completed action, ultimately
giving them more control over their advertising costs. Designed to
complement Google’s existing cost-per-click and cost-per-impression
pricing models, pay-per-action pricing offers advertisers yet another
choice, enabling them to reach their customers in a new way, and
thereby better meeting their goals and objectives.
Pay-per-action
ads are only shown on Google AdSense™ for content sites. AdSense
publishers are able to choose whether they want to serve pay-per-action
ads on their sites. Publishers can select between an individual ad, a
shopping cart of ads, or a specific term or phrase that is relevant to
their site’s content. Prior to ads being shown on their site,
publishers can view the specifics of the ad, including company name,
logo and products or services being sold. This visibility provides
publishers with control over which pay-per-action ads are shown on
their site.
With this new
pricing model, advertisers can create text or image ads in addition to
using Google’s new text link ad format, which are brief text
descriptions that take on the characteristics of a publisher’s page.
Pay-per-action advertising is available to U.S. advertisers. Over the
next few weeks, Google will begin adding advertisers and publishers to
the beta test. Advertisers and publishers can sign up now to
participate and more will be added to the test on a rolling basis.
Google, AdSense, and AdWords are the trademarks of Google Inc.
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