Google Slowly Expanding Pay Per Action Beta
News out from Google today that they are expanding their Pay Per Action beta on a global basis. (Full release here). Although now world-wide, the PPA beta is still limited to the AdSense publisher network and doesn’t touch Google’s own paid search listings.
As I mentioned in my March post discussing the Google beta, Google has a huge cash cow to protect in its Pay Per Click advertising system, and its move towards Cost Per Action advertising would likely be slow and methodical. This news didn’t disappoint.
As long as the PPA program at Google is limited to third party publishers on Adsense, this program will have limited success. As a publisher, it is far easier for my site to generate click revenue than conversion revenue. What’s more, Google’s PPC rates are extremely high because of the liquidity of its PPC back end auction. Google will need that kind of competition in its PPA program to create higher rates as well over time.
Google is asking its publishers to take a lot of additional risk, something that I’m sure the vast majority of them will be unwilling to do until it is clear that higher ad revenues await.
September 4th, 2007 at 3:11 pm
When i was searching through web 2.0 business models, almost 90% sites depend on Google/xyz text ads, PPC, PPA etc. But, the fact is most people(like me) have never seen ads. I block ads everything. My browser (both firefox and maxthon) can block all ads (google, doubleclick, overture,..) completely. I wonder how this model is sustainable. That is why even google is moving away from this model. Can you enlighten me..I have this doubt for a very long time and no answers….
May 9th, 2008 at 11:17 pm
Improved Search Engine Placement
there are lots of ways