Google is testing a new advertising system that allows businesses to advertise on a cost per action basis. You can find Google’s own announcement here.
How does Google’s new product work?
Until now, Google has primarily sold pay-per-click (PPC) ads, so-called AdWords ads: advertisers pay when someone on Google or a Google partner site clicks on the ad.
Google AdWords has one big advantage and one big disadvantage: You only pay for clicks of potential customers, but you risk paying a lot of money for nothing because of click fraud.
There has been a lot of debate around click fraud because Google has a short term financial incentive to promote it. Google’s new advertising product is “pay per action” (PPA). You don’t pay per click anymore but you pay when a customer takes further action, such as requesting a catalog, signing up for a newsletter or buying a product.
PPA advertising is meant to mitigate the risks of click fraud.
Read more about it in the forums
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