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06.04.07:
Pay per Action: What does it mean for advertisers? |
The concept of pay-per-action is as old as pay-per-click or pay-per-call, so why then is pay-per-action is being talked about as the next big advertising concept?
The reason is simple; Google’s announcement that their pay-per-action beta test is nearing its end and a full roll out of the service should be available later on this year. Although other affiliate marketing companies (LinkShare , Commission Junction ) have been in this space since the inception of online advertising, this announcement by Google must have them shaking their heads wondering if their own slice of the pie is about to disappear.
Affiliate marketing companies are not the only ones who are viewing
this development with trepidation, marketing personnel and their
advertising agencies also have reason to sit up and take notice. The
concept of buying eyeballs (impressions) or clickthroughs online has
always been open to criticism from those who feel that the current
methods of evaluation are somewhat ‘loose’. The principle of
pay-per-action clears away any doubts about the efficacy of an
advertising campaign as the advertiser only pays for the advertising
that results in a pre-qualified action (i.e. sale, download,
registration).
While this does not spell the end of branded advertising, the fact that
an advertising behemoth like Google is investing in the space means
that they see real potential in this model. And why shouldn’t they, I
can think of a number of our own clients who would look at a model that
promises to pay for only the advertising that works, and say “Yes
please”.
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1. sweet.
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, on Monday.05.14.07
great article dude.
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