So Google is really going to stop charging per click and take CPA offers instead? THAT will be interesting to see. Obviously Google hopes to make MORE money with this program than with pay per click ads. Advertisers hope to pay LESS. Content sites that sponsor Google Ads want to EARN MORE.
I wonder how the competing interests will work themselves out?
Google is testing a new ad system.
Google is experimenting with a new proposition for advertisers: If you don’t get results, you don’t pay.
The company said it will expand a test of a system that allows advertisers to pay only when an ad spurs a customer to take an action, be it purchasing a product, subscribing to a newsletter or signing up to receive a quote from a mortgage broker or car dealer.
The vast majority of advertisers now pay Google when a user clicks on ads that are displayed alongside its search results or on other Web sites, while some are billed based on how many people view the ads.
“We’re optimistic that it will be something that will be very compelling for advertisers,” said Susan Wojcicki, vice president of product management at Google. Wojcicki said the system would also give participating Web publishers a wider choice of ads for their sites.
Under the cost-per-action system, advertisers decide what they are willing to pay for a specific action, like a purchase or a software download. Armed with that information, Web site publishers then choose whether to run a specific ad or group of ads on their sites.
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