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Friday, June 23, 2006

Google launch Cost Per Action Advertising

Posted by Harsha

Google is launching a new advertising model that generates revenue when visitors buy an item rather than just clicking on an advertisement.

It is an extension to its current pay-per-click programme Google Adsense, which allows website publishers to display dvertisements from Google and receive revenue when visitors click on the ads.

The new conscept is based on a cost-per-action(CPA) model where the Website owners will only receive money when visitors complete a specific action determined by the advertiser, such as by purchasing an item or signing up for a service.

Google is increasingly having problems with click fraud with its Adsense programme, where a person or automated script clicks on advertisements for financial gain. The search giant has recently settled a lawsuit for $90m. A cost-per-action model is less vulnerable to such Click fraud, since users need to perform a specific task.

"These ads will not compete with contextually targeted ads. Instead, they will show across a separate Content Referral network," said Google.


The move puts Google in direct competition with already established player like ValueClick which owns affiliate network Commission Junction.


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