Friday, March 23, 2007

Google toys with new ad-click models

GOOGLE is experimenting with new pricing models for its advertising as possible replacements for pay-per-click, the model on which the search giant was built.

The company said it had started limited beta trials of pay-per-action advertising, a model under which advertisers only pay when a pre-determined set of actions are completed on their site.

Google says pay per action gives their advertiser the options of paying one when a customer makes a purchase, signs up for a newsletter, or completes some other function pre-determined by the advertiser themselves.

“Advertisers have the freedom of defining the value of a completed action, ultimately giving them more control over their advertising costs,” the company said in a statement.

“Designed to complement Google’s existing cost-per-click and cost-per-impression pricing models, pay-per-action pricing offers advertisers yet another choice, enabling them to reach their customers in a new way, and thereby better meeting their goals and objectives,” it said.

The company said it would over the next few weeks start trialling the new pricing model among advertisers and publishers over the next several weeks. It has invited businesses that want to participate in the beta to apply online.

Pay-per-action ads are only shown on Google AdSense for content sites. AdSense publishers are able to choose whether they want to serve pay-per-action ads on their sites.

The company said the pay-per-click ads would be indistinguishable within content from the pay-per-click ads.

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