Just last week I was talking with a friend who works in the online adverting industry.

Of course, Google’s new pay-per-action extension of AdWords came up. And I learned something about CPA - cost-per-action, that I just hadn’t appreciated.

The CPA and so pay-per-action model was, in fact, around BEFORE CPC - cost-per-click, the model used in Google’s Pay-Per-Click AdWord’s product. I knew that about CPM - cost-per-impression, but not about CPA (not something I appreciate when I wrote my previous post on this subject.).

Well, blow me down.

So what’s all the fuss. Pay-per-click is in fact the more innovative product according to history; not this new pay-per-action.

Well, the real challenge is the combination of accurate tracking, pay-per-action AND, the real challenge, a bidding engine (so advertisers pay top dollar for top actions).

If Google can pull off these three things, then it seems they will have a unique advantage in this ‘old hat’ approach that could really change the online marketing industry … again!

-Mark

This entry was posted on Friday, April 13th, 2007 at 3:49 am and is filed under Observation, Traffic generation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.