Commission Junction killer: Google AdSense Tests CPA (Cost per Action) Adverts

[Kristijntje]

Google AdSense going up against Commission Junction with test of CPA Ads.  The invite:

The Google AdSense team would like to invite you to test a feature that provides you with a new way to earn revenue from your website by hosting ads that are compensated based on a Cost-Per-Action [CPA] basis. These ads are very different in that you will be able to choose amongst a selection and you will also have more flexibility in promoting them…

FAQ for Google CPA ads:

    How do I participate in the CPA test?

    Simply reply to the invitation email and express your interest in participating and we will send you some sample CPA ads. You can then choose which ads you’d like to host and we will send you the code to copy and paste on to your site. It’s just that easy!

    What can I do to optimize my revenue from the CPA ads?

    While we encourage you to experiment as much as possible with these ads on your site, here are some general tips on implementing a CPA ad:
    1) Ads that blend in with the site and are placed prominently tend to perform better. Look to integrate the ad within the page.
    2) Ads that are relevant to the interest of your site visitor also tend to perform better. For example, if you have a travel site, having ads relevant to airline travel would generate higher interest. For more tips on increasing revenue, please see our optimization tips page at: https://www.google.com/support/adsense/bin/static.py?page=tips.html&sourceid= aso&subid=ww-ww-et-asui&medium=link

    How do I get paid?

    You get paid whenever a site visitor clicks on the ad on your site AND performs a specified action, such as generating a lead or purchasing a product.

    Do these compete with regular content ads?

    These ads will not compete with contextually targeted ads. Instead, they will show across a separate network, the Content Referral network. To place one of these ads on your site, you can set up a new ad unit that supports any of our current ad unit sizes.

    How much could publishers expect to earn with this CPA test?

    How much a publisher will earn will depend on a number of factors about the publisher and advertiser, including whether the ads match the topic of the site, and level of interest of their site visitors. We have tried to match the appropriate publishers with advertisers for this test.

    Will CPA offerings compete with my current AdSense revenue?

    We expect that the CPA test will offer ad units that will expand publishers AFC revenue because the ad units are separate and appeal to different types of users. These CPA ads are also additional inventory to your existing AFC ad units.

    How can I promote the CPA ad unit?

    Since this is a test and these CPA ads are not regular ad units, we are giving you more flexibility in saying things like “I recommend this product” or “Try JetBlue today” next to the CPA ad unit. However, you should still not incite someone to click on the ad, so saying “Click Here” is not ok.

    Where do these CPA ads comes from?

    The CPA ads come from a limited group of high quality advertisers that are interested in displaying ads on a CPA basis. They pay you whenever a site visitor performs a specified action, such as generating a lead or purchasing a product.

    Will I be able to see reports within my account?

    When the test begins, you will receive weekly email reports of conversions you have accrued and your total revenue within the CPA test..

[jezebel]

CPA ads never perform well.

[mandy]

Update:

Google on Tuesday announced a new business model for online advertising -- if an ad doesn't get clicked, the advertiser doesn't have to pay for it. According to the search giant, the new model isn't intended to replace the current system but, rather, provide advertisers greater control over their advertising costs, as well as complement the existing pricing models...

Google said the beta ads would not run on its search results pages, but on its AdSense network of content sites. The AdSense publishers will gain greater control over the ads that run on their sites after they start accepting pay-per-action ads...

The new model is likely better suited for businesses that sell services rather than products, and are looking for customer leads, Enderle added...

full article: http://www.ecommercetimes.com/story/sM89...gain.xhtml

Many of you already use referrals to direct users to your favorite Google products. Now, with our new referrals beta, you can select products and services from our base of AdWords advertisers. This is good news for those of you who have wanted to use referrals in the past, but couldn't find a product to match your site's content. With the referrals beta, you can search for products that match up directly with your site's content. And you can customize your referral units to match the look and feel of your site, making it easier than ever to find a referral ad that fits in seamlessly with your site's design and content.

What's more, Google can help make sure you find and display the most relevant, best-performing referral ads on your site. Simply provide a few keywords to describe your site and your users' interests, and you'll see ads automatically displayed that perform best for your site. No more constant updating, rotating products, or guesswork.

As with our current Google referrals, you'll generate earnings when your visitors click through to an advertiser's site and complete an action defined by your advertisers, such as a sale or sign-up. Because these actions are often more involved than a simple click or impression, advertisers pay more for these referrals, which can translate into higher earnings for your site.

full announcement: http://adsense.blogspot.com/2007/03/now-...r-new.html

[bargainbloodhound]

[quote author=jezebel link=topic=4172.msg16564#msg16564 date=1151024606]
CPA ads never perform well.
[/quote]

:ditto:

If Google tries to force that crap on site owners I'm running to Yahoo and AdBrite.

As an advertiser though I might use it.

[jezebel]

Now, with our new referrals beta, you can select products and services from our base of AdWords advertisers.

Referrals is google-ese for affiliate ads

[mandy]

A related article:

I pointed out Monday how "Google's new ecommece engine can mislead consumers," underscoring that its new AdWords Pay-Per-Action (PPA) text link format encourages the "blending" of paid for ecommerce transactional links into publisher editorial, but does not require any upfront "advertorial" disclaimers by AdSense publishers for the Google ad product being shown to consumers "blended" with "objective," non-paid for content.

I cite the Better Business Bureau to indicate how the new Google "paid link" modus operandi is not in the spirit of best online business practices.

Now, Google's Matt Cuts warns that Google is "going to be looking at paid links more closely in the future," the paid links of others, that is, with the aim of penalizing any Web site that uses paid links in any way Google doesn't want it to.

WHY? Because now that Google has its own, competitive "paid link" product in its new PPA model, it wants to corner that online advertising market, too!...

full article: http://blogs.zdnet.com/micro-markets/?p=1194

[mandy]

Update:

This past March, we launched a referrals beta to test the feature and iron out some wrinkles. Now that we've finished our testing, we're pleased to announce that referrals 2.0 will soon be available to all AdSense publishers in referrals-supported languages.

While some of you may already be familiar with referrals for Google products, this launch will greatly expand the inventory and functionality of referrals for AdSense publishers. Below we've highlighted a few of the key benefits of referrals 2.0:

    * Expanded product inventory: While many of you have had success referring one of our Google products, some of you weren't able to find a product that fit the context of your site. Referrals 2.0 offers products from thousands of AdWords advertisers, so you can find the right ads for your sites...

full announcement: http://adsense.blogspot.com/2007/06/refe...sense.html