Google’s Pay-Per-Action programs in beta test…

Posted March 21st, 2007 by Nelson Tan. Filed under News

J.P. Schoeffel of Niches-In-A-Box just got a great piece of news concerning AdWords/AdSense: Google is beta-testing CPA ads and text link ads on the US market currently. There will be new implications to working in both programs.

For AdWords advertisers, they will be able to bid for an action, and not only for a click! This is a HUGE difference, meaning you won’t have to fear paying for all this useless clicks. In addition it will lower the “click fraud” syndrome which is a real pain with AdWords.

An action could be :

1) a lead: you will pay when the visitor has completed the form, thus becoming a ‘real’ prospect you can follow-up. The value of your bid is now connected with the potential lifetime value of your lead instead of the nanosecond value of the visitor’s click to your website. I think this spells a positive sign for opt-in pages. Is Google doing a turnaround in its perspective towards opt-in sites?

2) a sale: it’s a disguised affiliate program. But imagine the profits it could generate (especially in non-IM related niches). You will offer $5 or $10 for each sale generated. Don’t you think you will find publishers for your program?

For publishers, Google is trying out a new type of text link ad. It will be a few words of text that will be inline with your own content. It will be transparent, and your visitors will not be able to know it until they click on the ad.

For example, you will have an article. Inside a sentence, you will have a ‘natural’ sequence leading to the “action form” the advertiser bids on. If the visitor completes the action (lead, sale), you will be paid for this.

It’s kind of what some scripts do by embedding ClickBank product ads inside your content…the main difference is it will be much more relevant than most of the products that are presented as not so related to the content.

We keep you posted as new development arises.