Google Pay-Per-Action Launches for AdWords & AdSense

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Google has rolled out the beta version of their new ‘affiliate’ influenced Pay-Per-Action Adwords model where advertisers pay Google & its publishers only when a user has clicked on the ad then performed a specific action.

Action does not only mean a sale, it could be a lead, the completion of a contact form, or perhaps even a free trial subscription or download.

More from Google:

  • First, you’ll create an ad and define the action that you want a user to perform when they visit your site, such as signing up for your newsletter or purchasing a product.
  • Then you’ll set the amount that you’re willing to pay when this action is completed.
  • Finally, you’ll install conversion tracking code on your website so that we can verify when an action has been completed.

Google AdSense publishers in the Google content network then choose to place such ads on their website, payouts only occur when an action is met.

Pay-per-action ads complement your current campaigns by providing a new pricing model that extends your reach and allows you to pay only when a defined action is completed on your site. This beta feature is currently available to AdWords advertisers in the United States on a limited basis as part of our beta test.

Andy Beal adds that the new PPA system will also include a text link style ad format which can be integrated into content:

Publishers also get a new “text link ad” format, which allows them to display JavaScript ads that appear as a single text link. Publishers will be able to search for text link ads that match their chosen text string. Perfect for bloggers looking to monetize their site, but would prefer to add embedded text links, rather than whole blocks of ads.

Why would Google allow publishers to embed links in their content for PPA and not normal AdSense? Because the advertiser, in this case, is not paying for the click, but for the conversion.

If Google Pay-Per-Action is a success, how will this effect the affiliate marketing sector and do you see Google expanding their network via acquisitions of established affiliate networks? I do.

Loren Baker
Loren Baker is the Founder of SEJ, an Advisor at Alpha Brand Media and runs Foundation Digital, a digital marketing strategy & development agency.
Loren Baker
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  • Ask a Question

    Slowly but surly google is taking over the whole Advertising market, hopfully in the near future they’ll start Feed ads aswell.

  • Beginners Guide to SEO

    Yes another move for Google into the always changing Web Marketing field, is gonna be interesting to see how it evolves and how is going to affect the Pay Per Advertising field.

  • Hawaii SEO

    It makes me wonder how LinkShare will handle the situation.

    LinkShare has an “Exclusivity” Clause in their Merchant contracts where the merchant can only do affiliate business with LinkShare versus LinkShare & CJ.

    I guess it makes sense. Why would you want to run an affiliate program with several different companies. Google seems to add a twist to the situation because I’m sure every LinkShare merchant already has a preexisting arrangement with Google.

    It may also cause a double-dipping problem.

    If you use both LinkShare & Google… An affiliate could place both LinkShare & Google links on the website… A single prospect might click both links and the merchant would need to pay could pay the affiliate twice for a single transaction.

    I don’t believe large companies who already have an affiliate program will go with Google in large numbers.

  • Shailendra Dubey

    Hi, Loren, can you told me that how many times in a day a MSN crawler visits a particular site

  • Max

    They are also playing around with adsense / images combined – the same thing they told us all not to do on our sites not so long ago. Now they are testing their own version of it to increase CTR’s from what I have heard..

  • Bashar Abdullah

    For a start, it will kill the click-fraud, one of the biggest Google headaches. I assume the cost of the click would be a bit higher, but that’s quite fair enough since I’ve already caused the lead or required action.

    Unless the amount is high however, I think Adsense users will not find it beneficial. The fact however that you can embed ads as text links means you are virtually becoming an affiliate to all those advertisers, I totally agree this is a big advantage for bloggers. Many blogs display Google Ads that are not so much relevant and attractive. According to the link you provided, seems the minimum is $1 per action, not bad.

  • darkblack

    if its not going be ppc then quality of the conversions/leads will go up for advertisers, but that means less money for publishers

  • Hiren Modi

    Good Article from Loren!!!

  • Shailendra

    This is nice.
    Google is Googling

  • online marketing expert

    I am also agreeing with the above point that if its not going be ppc then quality of the conversions/leads will go up for advertisers, but that means less money for publishers

  • Velvet

    and now it’s gone 🙁

  • sujan

    Nice. I think this is one kind of Affiliate program then Pay per click.

  • quarterpie

    Nothing is gome Velvet… the program is still very much functional. And they do have a good click fraud mechanism in place.

  • Quarter Pie Interactive

    Nothing is gone Velvet… the program is still very much functional. And they do have a good click fraud mechanism in place.