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Recently, Google came out with a new pay-per-action, or PPA,
advertising product. This new advertising product is important
for quite a few reasons. How will this new system affect your
business? Google's new system permits businesses to advertise on
a cost per action basis. Pay-per-action advertising is a new
pricing model with a step by step process in place, according to
which, you define actions and pay only when they are completed,
for instance a lead, a sale, or a page view. Following are points
to note:
- Pay-per-action ads are only shown on sites in the Google content network.
- You can create text ads, image ads, or our new text link ad format in your pay-per-action campaign.
- You'll only pay when that action is completed, not for a click or impression.
- At this time, the pay-per-action beta test is only available to advertisers in the United States.
Until now Google has worked with cost-per-click or CPC ads or Google Ad Words Ads. According to the CPC advertising program, an advertiser is meant to pay a fee when someone on Google or a Google partner site clicks on the ad and is delivered to a web page designated by the advertiser. Google AdWords has one big advantage and one big disadvantage: You only pay for clicks of potential customers, but you risk paying a lot of money for nothing because of click fraud. There's been a lot of debate regarding click fraud.
PPA advertising mitigates the risks of click fraud. Since advertisers only pay when the action defined by them has been completed, PPA advertising reduces click fraud to a minimum. This makes this advertising product more secure and profitable. Consequently, the value of quality generic domains will go up, while junk traffic domains will lose value.
PPA ads will be ranked by profitability to Google. Thus, advertisers who are meant to confirm the completion of actions defined by them will not abstain from admitting if they want a high ranking. Google's new PPA advertising product is more beneficial for smaller advertisers for whom click fraud can wreak havoc.
Pay per action program is currently in beta test. You may participate by invitation only, within the US, and you need to be a part of Google's content network of partner sites (Google AdSense). Right now, it's for the privileged few!
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