Expanding Google PPA Beta test
Apr 03, 2007
First let's make a short revision so that everybody has a clear understanding of what PPA actually means, however you can find
in our news section the very first launch of PPA Beta Test by Google posted on 26th March 2007. Cost per action (CPA) or pay per
action (PPA) is totally different from cost per click (CPC) or pay per click (PPC) and nevertheless more advantageous and cost
effective for advertisers since from now on they will be paying only for those clicks which are previously set as being considered
a particular targeted action (newsletter subscription, submitting a form, sales or leads, etc.).
There are many changes to be expected in the online advertising models and here are a few on which any of us involved in the online
business should take a closer look on.
Many thought that this new advertising model recently launched by Google can be used in AdWords in the Sponsored categories on the
search engine result page listings. At least at the moment Google's PPA model is not designated for that purpose! It is
important to know for any advertiser that applying to Google's new advertising PPA model their ads will appear on Google's
publisher network and they can control the amount of money to be spent for a specific action taken by the surfer on their websites.
Advertisers can set themselves their daily budget, how much they are willing to spend on a day.
Advertising formats are also available in variable forms like simple text ads, image or text links. Though at least at the moment
advertisers can not choose the sites on which their ads to appear.
Here are a few requirements to be able to use Google's PPA:
- at the moment it accepts only US participants
- you need a conversion tracking tool set up on your website
- your ads can appear on publishers' websites from other countries
Now let's see what PPA brings for publishers:
Publishers are free to decide on which ads to appear on their websites or let Google decide it. Publishers can choose the topic to
which the ads are related or select by keywords or products through the entire inventory of available ads.
For some publishers this new PPA technique introduced by Google can become an agonizing punch as they are not being paid for the
clicks on their website and are totally dependent on the targeted website on which if the surfer is not clicking on the desired
predetermined action publishers are not generating any revenue. Advertisers as well as publishers will get detailed reports of
their conversions, generated revenue and their performance in general.
With this new model publishers might be paid for much less clicks but those action clicks can bring them more revenue as advertisers
are also paying more for the targeted clicks than for any simple click on their websites.
As we have learned it seems that publishers can run both PPC and PPA ads on their websites thus both advertisers and publishers are
given more options how to run their online business more efficiently.
We also have to admit that publishers are more or less in a disadvantage against the advertisers who are not risking their money like
in the PPC model.
Go back
|
