Google is testing a new online-ad system in which advertisers pay only when their ad leads to a purchase or a sales lead, the company confirmed Thursday.
The new cost-per-action system will be a separate ad auction system from the current cost-per-click setup, Google spokesman Brandon McCormick said. The ads are being offered through Google's AdSense unit, which places ads on Web sites.
AdSense publishers will be able to choose from a selection of ads and will have more flexibility in promoting the ads, according to Google.
Because they'll be tied to a purchase, the new ads are expected to be auctioned at higher prices than cost-per-click ads, which cost advertisers every time an ad is clicked on, despite whether it leads to a sale. The ads also would cut down on click fraud, which occurs when ads are clicked on without the intention of making a purchase.
"We're always looking for new ways to provide effective and useful features to advertisers, publishers and users," Google said in a statement. "As part of these efforts, we are currently testing a cost-per-action pricing model to give advertisers more flexibility and provide publishers another way to earn revenue through AdSense. We're pleased with how the test is progressing and will continue to gather feedback from advertisers and publishers."
Kelsey Group analyst Matt Booth said the move was smart for Google and that Yahoo also will eventually be offering cost-per-action ads. "Actions like telephone calls, lead forms or transactions are more valuable than clicks," he wrote in an e-mail statement.
McCormick would not say how many advertisers are participating in the test, which was first reported by David Jackson on his Seeking Alpha blog Wednesday.
Their ad system needs to be upgraded. <a class="jive-link-external" href="http://www.techknowcafe.com" target="_newWindow">http://www.techknowcafe.com</a>
Their ad system needs to be upgraded. <a class="jive-link-external" href="http://www.techknowcafe.com" target="_newWindow">http://www.techknowcafe.com</a>
The Internet has been flooded with annoying ads. I've gon from loving Google to loathing it. Think back to the year 2000, when Google was just a clean search engine, a privately owned company, and the jewel of the World Wide Web. Now it's just so full of trash. "Relevant results" have been replaced with "Relevant ads", which is why I'm seriously considering Clusty or another lesser known search engine. Thumbs down for Google.
The Internet has been flooded with annoying ads. I've gon from loving Google to loathing it. Think back to the year 2000, when Google was just a clean search engine, a privately owned company, and the jewel of the World Wide Web. Now it's just so full of trash. "Relevant results" have been replaced with "Relevant ads", which is why I'm seriously considering Clusty or another lesser known search engine. Thumbs down for Google.
Google offering cost-per-action ads. This is really good news it means Google are confident that if you place an advert with them you are going to get business.
I applaud them for this move and cant wait to try it out.
Google offering cost-per-action ads. This is really good news it means Google are confident that if you place an advert with them you are going to get business.
I applaud them for this move and cant wait to try it out.
Web giant is spending $120 million to beef up its Mountain View, Calif., headquarters, according to filings with the city reviewed by the San Jose Mercury News.
The Samsung Galaxy Mini 2 S6500 could make its debut at the Mobile World Congress in Barcelona later this month, according to a leaked promotional image.
MIT creates a simulation to celebrate the 50th anniversary of Spacewar. A relic of the early days of minicomputers, it was one of the first computer video games and set the stage for many others, including Asteroids.
<a class="jive-link-external" href="http://www.techknowcafe.com" target="_newWindow">http://www.techknowcafe.com</a>
<a class="jive-link-external" href="http://www.techknowcafe.com" target="_newWindow">http://www.techknowcafe.com</a>
But, hey, it's a smart idea. Where can I sign up?
But, hey, it's a smart idea. Where can I sign up?
I applaud them for this move and cant wait to try it out.
www.g3creative.co.uk
I applaud them for this move and cant wait to try it out.
www.g3creative.co.uk
Will the business have to further inflate the Shippind and "handling" charges to cover loss by returns?
Will the business have to further inflate the Shippind and "handling" charges to cover loss by returns?
for advertisers.
for advertisers.