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Tuesday, July 25, 2006

Cost Per Action by Google

Google is testing its new hot product CPA (Cost Per Action), where promoters are paid commission on action (sales or generating a lead). Now advertisers can get rid of fraudulent clicks.

I am wondering will they run these CPA ads on Google.com, for now they are inviting people who are running adsense on their site.

Just a thought – If these CPA thing works well for all (all in sense advertisers + promoters + google) will it wipe out PPC (Pay Per Click) popularity?

4 Comments:

blog manager said...

Let me add to what you have!

Click to Action model is under trial phase by Google and they are testing this model to their large spenders in US. Who spends more that $100K per month. It is nothing to do with Pay Per Click as of now. It's Works similiar to any affiliate website. This model is tested with the premium publisher (adsense partner) of Google which they have filter through their CPM - CPC Technology to deliver you the CPA model. Also Google has left the advertiser to decide on the $CPA as they are not predicting anything on this as this can lead the CPA service to a commodity.

Well PPC will never be effected because that's the model has minimal risk and high gain for GOOGLE or any Search Engine for that matter. I guess even you would not like to get effected by a continue revenue generating source ;)

The thing that can effect PPC is Click-to-Call? Think about it.

6:30 PM

 
venkat said...

its cost per action not click to action ;)

CPA is being tried to check www.snap.com, the latest venture of bill gross the founder of overture.com and to counter lots of affiliate networks. Needless to say it is advantageous to the advertiser if he pays in tune to the results.

Pay Per Call (click to call) is primarily intended for those who dont have websites. (the original innovator - www.ingenio.com, wanted to tap 60 million + businesses that dont have a web presence and hence came up with that idea)

The advertiser is paying in several ways
1. CPM - cost per 1000 impressions
2. CPC - cost per click
3. CPL/CPA - cost per lead/action
4. PPC,c2c - click to call, Pay Per Call

imo, these 4 will not be replaced. An anology will be Radio was there and when TV was introduced, people thought radio will be replaced, but it never happend that way. They co-existed.

People think TV will be replaced by net, but i think TV, Radio, Print and outdoor will all remain along with internet and within internet - cpm, cpc, ppc, cpa will all remain at the same time - only the %age of monies spent on these will vary. Some will get more money and some lesser.

what say?

6:55 PM

 
blog manager said...

Sounds fine to me. I apologize for the mistake and thank you for correcting me. But if you see in my comment I am talking about CPA i.e. Cost Per Action ;)

1:55 AM

 
blog manager said...

Do think about Click-to-Call with a Call tracking solution for your client? That's not only work for Local Businesses but also Internationally.

CPM, CPC, CPA, CTC - The most efficient is CTC. Think about it?

1:58 AM

 

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