Google Tests Pay-Per-Action For AdWords

March 21st, 2007 | RSS Feed



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Google has announced a limited beta test of pay-per-action advertising. This is a new pricing model that permits an advertiser to pay as and when the predetermined actions are completed on their site.

The press center reports: The pay-per-action model gives advertisers the option of paying when a customer makes a purchase, signs up for a newsletter, or completes any other clearly defined action the advertiser chooses. Advertisers have the freedom of defining the value of a completed action, ultimately giving them more control over their advertising costs. Designed to complement Google’s existing cost-per-click and cost-per-impression pricing models, pay-per-action pricing offers advertisers yet another choice, enabling them to reach their customers in a new way, and thereby better meeting their goals and objectives.

The Google AdWords help center informs:
Text links are hyperlinked brief text descriptions that take on the characteristics of a publisher's page. Publishers can place them in line with other text to better blend the ad and promote your product.

For example, you might see the following text link embedded in a publisher's recommendatory text: "Widgets are fun! I encourage all my friends to Buy a high-quality widget today." (Mousing over the link will display "Ads by Google" to identify these as pay-per-action ads).

Though the maximum length of a text link is 90 characters, we've found that shorter links perform better because they allow the publisher use the link in more places on her/his site and in different context. The maximum length is 90 characters but less than 5 words is best. Even better, just use your brand name to offer maximum flexibility to the publisher.

Catch the forum discussion on ThreadWatch.

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