Google Now Looking into Pay-Per-Action for Advertisers

Posted Mar 21, 2007

Most likely the result of an advertiser backlash, Google is now designing new propositions: pay-per-action. Google stated yesterday that the company would be expanded payment plans for advertisers so that they would only have to pay only if a consumer takes some sort of action such as buying a product or subscribing to a newsletter. The current system is set-up so that advertisers would have to reach into their pockets and pay publishers if website visitors simply click on the ads.

“WeĆ¢??re optimistic that it will be something that will be very compelling for advertisers,” stated Susan Wojcicki, a Google VP of product management. What do publishers get out of this deal. “Ms. Wojcicki said the system would also give participating Web publishers a wider choice of ad types for their sites [New York Times].”

Other competitors of the pay-per-action model includes Snap and Turn. “We think it is a model that all the large players in search will be embracing over time,” stated Tom McGovern, CEO of Snap. Tom McGovern was interviewed early this year by CNBC in a series entitled ‘The Search is On For the Next Google.

Let’s not forget the other boys in the band. Yahoo! is actively working on Panama and CEO Terry Semel is saying he is ‘very happy’ with the new system. Also, a couple days ago I wrote about Microsoft’s video hyperlinks.