Google announces Pay Per Action beta in Europe
Posted by Admin @ April 1st, 2007 in Search Engine Marketing
Google announced to its advertisers outside the US – including 77 – that it’s beta-testing the Pay per Action system: advertisers only pay when users complete a certain action on the advertiser’s site after being directed there from an advertisement on Google.
Google’s AdSense system determines which advertisements are shown for which keyword, depending on expected conversion rate and the amount of money the advertiser wants to pay for a conversion on that keyword.
At first sight, you might think it allows advertisers to just throw their advertisements out there and hope for some conversions: if the advertisements don’t yield any actions, no harm done. But actually, this new system forces the marketers to optimize their advertisements more. If an advertisement is known by Google not to generate any conversions, it is not likely to be shown since the expected value for Google is much lower – unless you are willing to pay much more for a conversion. So we as marketers need to create efficient ads to keep the cost per action low.
For more information and instruction on the use of Pay per Action, go here.
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