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Google recently launched a beta test program called “Pay Per Action”. Instead of paying when someone clicks on your ad a number of things have to happen before you will be charged. The person who clicks on your ad will have to complete an action specified by you before you will be charged. You only pay for the action and not for the click. You set the price of the action. You pay what you think the action is worth. I’m not sure if there is a minimum bid or not on an action.
For example let’s say that you want to build an email list. The action could be as simple as someone filling out a web form and supplying their name and email address. Another action could be a purchase which seems to me the best way to go because you will only pay when you get paid which is in essence free advertising for you. From what I can see, you can’t lose advertising this way.
The downside is, (yes there always is a downside) this is only available to people in the United States at the moment and will only work on your own website. Since you need to add code on your web pages to use this service, you will need to have access to your html pages to insert the code. You won’t be able to use this with affiliate products. You need to have your own product in order to use pay per action to make sales.
Another drawback is that “Pay Per Action” will be advertised through the content network. I’m sure that you well know if there is a way to cheat this people will find a way to do it. I hope there isn’t. This sounds like it has potential and a better way for marketers to advertise their own products. I can’t see it easily happening using a purchase action. It’s the other actions that concern me. ie. Advertisers using it to collect leads. What would stop people from fraudulently filling out the web email form?
If you own your own products and sell them on your own website, this might be a great cost effective way to advertise your product or line of products. I wouldn’t try using it for anything other than purchases until you learn and better understand how the whole program works.
To get more info click the link here. It gives you more of an explanation to how the program works and its requirements. http://adwords.blogspot.com/2007/03/pay-per-action-beta-test.html
You may want to try this out while it’s still in beta because it will probably be a lot cheaper now than it will be when it comes out of beta. If you have your own website and products and set your action to be for purchases only you really have nothing to lose because you only pay when you make a sale.
