Pay Per Action – The Be All OR End All Of Online Marketing - Pay Per Click (PPC) Management

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Pay Per Action – The Be All OR End All Of Online Marketing

September 12th, 2007 by Click Consult

Pay per click marketing has been a phenomenon of modern business. It has raised Google to dizzy heights and cast others down to the depths. Yet while the success has been accessible for all there has been a growing fear and (paranoid) suspicion that a good portion of PPC budgets are lost to click fraud. The solution Pay-per-action or PPA.

Why pay for all the clicks when you can just pay for the one that is actually worth some thing to your business?

Still currently in the Beta test stage for Google, but widely available on other engines such as SNAP.com, PPA has been hailed as the solution to click fraud. The impressions and clicks are monitored yet not charged. Only when the visitor completes an action that you deem valuable you are charged.

Set up in much the same way as conversion tracking in Adwords it couldn’t be easier. Once the “action” or conversion method has been verified, all you need to do is watch the clicks and impressions to build up and wait for those sales & leads. But what affect will this model have on the wider market of PPC.

PPA is an effect of consumer pressure. In this case, we, the advertisers, are the consumers. We want to only pay for the clicks that convert to sales or leads, but what about the other clients of the engines, the publishers.

The adsense program for Google has long since been a good source of revenue for web sites of all sizes. Do they want PPA? I doubt that very much. Why should a publisher not get paid every time someone leaves their site? After all it’s not the publishers fault if it doesn’t lead to a sale. Google has already stated that up to 5% of all adsense ads will be PPA for all publishers, unless they opt out. And I image a good number will.

So without publishers where will PPA go? On to the sponsored links of the engines?

Another factor of PPA, that could be accelerated if the sponsored links auction system is used, it could be to inflate the bids and effective cost per action. This could consume the profit margins of any business, therefore losing the attraction of the PPA model completely. One of the biggest draws of the PPC model is that smaller companies can compete with the corporate web using well built, strategized campaigns

While PPA is an attractive package, it has many draw backs and will is unlikely replace the PPC model

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