According to Investors.com, Google testing a CPA ads system.
CPA stands for Cost Per Action, a service in which advertisers pay for ads they run on Google’s network only when a consumer takes “action.”
Action means that the consumer makes a purchase or fills out a form or some sort of registration on an advertiser’s Web site.
According to the story, Google uses “software and various means to track its ad-prodded actions, but the model pretty much requires that advertisers go to the expense to do their own tracking, to make sure they’re on the same page with Google.”
“”The per-action program is led by Performics, a unit of DoubleClick, the ad services company Google bought for $3.1 billion in 2008. DoubleClick.
Google is testing cost-per-action with both display and search ads.
In typical fashion Google basically refused to answer any questions about the product:
“As we are currently in the process of collecting and analyzing data from this ongoing beta, we don’t have any metrics or much more to share on this topic at the moment,” said a company spokeswoman, Deanna Yick, via e-mail.”
Go check out the full article here
Of course this is just a test but most in the domain industry 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. However with PPC revenues sliding that may not be all bad.
That is good news in one respect. It is opening the door to possible higher revenue.
However, will it be similar to our results with ppc?
G receives a $ 1. and we receive $ 0.10.
In theory CPA can generate higher revenue but unfortunately many affiliate programs generate disappointing results perhaps due to the tracking being dependent on cookies. At least with Adsense in its current state a publisher is guaranteed a payout and if they want to experiment with affiliates there are numerous networks available including Google.
If it is anything like what Performics used to be then God help us all.
Talk about not making money, if Google does/did not overhaul Perfomics then almost nobody will see any cash. They were very similar to Commission Junction……meaning not reporting sales.
Are we talking about Google then inserting its new CPA model into its own search engine results, thereby continuing the transformation of its search engine into a purely Google profit engine?
I dont think G is going to switch from CPC to CPA, but if the will it will be something like that – G gets CPC, and the publisher gets CPA – good for G and good for the advertisers, but bad for Publishers.
This is the worst mistake G can do, because they will loose their advantage and uniqueness.
I believe G is trying to enter the CPA market as an aditional option for advertiser/publishers, but cant see them switching.
It’s coming. I believe PPT to be even a step further than CPA. Or pay per transaction. Most people don’t want to create thousands of campaigns they just want a simple way to get business. I would pay 1,000 a lead if I knew my product would give me 2,000 in commissions. Though all of this is 2 or 3 years out I would think.
Sounds like they are going to have to require you to use Google checkout to produce objective audits.
The google checkout idea is something that would pit them against ebay/paypal in a major way, but I would agree with them in why they would want to do it…
One other concern I would have though, is affiliate marketers, how would I as an affiliate advertise a company’s product if I would have to make sure they buy before I pay google? I know a lot of people make their money as affiliates on google advertising other companies products, and I am just wondering how that will now work for those people.
CPA includes several actions like registration and so on. I cannot find relevant information on ADwords help.