01 April 2007

First there was CPC then CPA now PPA

Good article from WebPro News on Google's hush hush beta trial of PPA - Pay Per Action.

Way back when the world was new we used to surmise that the infinite real estate of the web would mean lower marketing and advertising costs. We surmised that everyone would have an equal chance at each sale whether you were a conglomorate or a Mum an Pop shop. Boy were we ever wrong. Clearly that has not happened and we are back to the sharp pyramids of havs vs have nots.

With Google Keyword search and CPC rates continuing to climb to almost obscene levels Google needs something new to drive new forms of ad revenenue. Enter PPA.

I cant help thinking that (and those who read this blog will know I have espoused this view before) - that Google is fast becoming a bigger (and badder) monopoly than Microsoft ever was. Hello - anyone awake at the DoJ??? Elliot Spitzer are you too busy with your politcal ambition. Nellie where are you? However just one caveat. I am a huge fan of what Google has done. So my concern is the level playing field for everyone particularly the small guys with niche products who cannot hope to compete with the big players.

Read on:

Google Whispers More Details About PPA
David A. Utter Staff Writer

The pay per action beta test for Google AdWords recently debuted, and spurred plenty of advertiser interest.

Since last week's announcement that Google would start offering AdWords PPA ads, where the advertiser pays only when a predetermined conversion has taken place, plenty of buzz has swirled around the plan.

A lot of that buzz has focused on a few distinct questions about PPA on AdWords. The Inside AdWords team at Google posted answers to some of the more frequently asked questions they have received about the plan.

International advertisers will have to wait to participate, as Google has opened this limited test only to US-based clients.
Advertisers must have a billing address in the United States, so even if an international business focuses on US customers, that isn't enough to be eligible yet.

PPA ads only show up through being displayed on sites that participate in Google's content network. They won't appear on Google or in its search network.

An advertiser concern of content networks has been the prospect of being displayed on less than desirable partner sites. Since the condition of PPA requires some kind of conversion to take place, typical worries about click fraud with pay per click ads should not be a problem.

On the content network side, AdSense members can sign up for a referrals program. Search marketers managing clients through the AdWords 'My Client Center' product can select individual accounts to participate in the PPA beta.

The fixed rate provision of PPA through the new program probably won't change in the near term. Some advertisers had asked about paying the PPA as a percentage of a sale, but Google is only doing the beta with a fixed price as the cost of conversion.

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