Google goes CPA PDF Print E-mail
Monday, 18 June 2007
Google is currently testing yet another form of online advertising. This time advertisers pay only for results. It is affiliate marketing at its purest : advertisers pay only when customers take action, be it downloading, subscribing, registering or signing up.

Offering affiliate-type advertising all fits into a scheme of expanding Google’s attraction to advertisers beyond the Pay Per Click domain. The appeal of CPA to advertisers is clear: they needn’t pay for ads that are ineffective. For publishers in the Google network it also means their choice in advertisers and ad types will be of broader range.

Google is putting the CPA ads only onto publishers’ websites and is essentially turning its own network into an affiliate marketing one. Since an affiliate network is principally just a network of sites, you might wonder why Google actually waited so long to start using their own network in such a way. Especially since CPA eliminates one of Google’s biggest problems : click fraud.

As the appeal of CPA isn’t mutually shared by publishers, since revenue for the limited space they have on their sites isn’t guaranteed, it’s not sure they will embrace the new possibility immediately. Customers as well as publishers are going to need decent incentives. Since initial testing started last summer, Google is only slowly evolving their tests to a larger scale. Exactly when the Pay For Result program opens up to the entire network is therefore unclear.

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