Google Experimenting with Cost-Per-Action Ads
According to Seeking Alpha, Google’s AdSense has started to test CPA (Cost-Per-Action) ads, in addition to the CPC (Cost-Per-Click) and CPM (Cost-Per-Thousand-Impressions) they already offer.
Publishers are able to choose which ads they want to show on their site, and the ads will not compete with regular AdSense for Content ads.
Some interesting quote from the letter Google sent to select publishers:
How can I promote the CPA ad unit?
Since this is a test and these CPA ads are not regular ad units, we are giving you more flexibility in saying things like “I recommend this product” or “Try JetBlue today” next to the CPA ad unit. However, you should still not incite someone to click on the ad, so saying “Click Here” is not ok.
Google has never allowed this type of promotion with referral ads, so it will be interesting to see if this is allowed when the CPA ads come out of beta.
Will I be able to see reports within my account?
When the test begins, you will receive weekly email reports of conversions you have accrued and your total revenue within the CPA test.
Google already has reporting features for their own referral products, so I’m surprised that they won’t have online reporting. This means people testing the ads will have to wait at least a full week between changes to see what works.
This is a major addition to the AdSense offering and puts them in direct competition with networks such as Commission Junction. This could be a huge new revenue stream for Google and its publishers.
Found via John Battelle’s Searchblog
TravelPixel Said,
June 28, 2006 @ 8:23 pm
CPA i presume means, for example, when a user clicks through to a site and proceeds to make a ‘sale action’? If that is the case Commission Junction will be quivering with fear!