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Quote:This overview is important because your target CPA and your site's ability to convert traffic affect the willingness of a smart ad-server system to show your ads at all. The higher CPA you select and the better your site is, the more impressions the smart ad server allocates.

Before giving Google your CPA offer, consider these questions:

    * Are all competitors in your industry managing purely on CPA, and do they bid accordingly on a CPC basis to reflect that CPA?

    * Does your site convert better than your competition's?

    * Will there be significant inventory in the Google ad network where your CPA ad and offer will generate a higher predicted eCPM than the competing CPC or CPM ads?...

Quote:Google is beta testing a different business formula for its AdSense product that eases up on its lucrative pay-per-click model in favor of a pay-per-action model. The new program could help address the click fraud problem that dogs the pay-per-click sector of the online ad industry...

Could the pay-per-action model help Google lead the way in addressing the industry's problem with click fraud? It could, if advertisers are provided more certainty that they are being charged for clicks made by humans, rather than automated programs, for example...

...the main benefit of the pay-per-action model over the pay-per-click model for advertisers is that publishers can no longer make money by clicking on or paying others to click on advertisements on their own site...

Quote:To read most of the articles on Google’s expanded test of CPA-based content ads, you would think it was the greatest invention since the wheel.  It could be great for certain advertisers, but only if they do it right.  As it turns out, that’s not so easy.

The tricky thing for advertisers is not going to be figuring out how much they’re willing to pay for an action, it’s figuring out how many actions they’re getting, crediting them to the appropriate source, and raising their budget based on that credit.  In order to do this, you can’t think like a search advertiser.  You have to think like a media advertiser...