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"Affiliate Marketing is online advertising where the advertiser (Merchant) pays for advertising purely on results. All affiliate campaigns are based on a revenue share or hybrid commission/leads deal."

(Source: E-Consultancy, Affiliate Marketing Buyers Guide, April 2004)

 

Rob Kniaz, Product Manager for Pay-Per-Action, says: "Pay-per-action advertising is a new pricing model that allows you to pay only for completed actions that you define, such as a lead, a sale, or a pageview, after a user has clicked on your ad on a publisher's site. You'll define an action, set up conversion tracking, and create ads that publishers in the Google content network can then choose to place in new ad units on their site."

(Source: Inside AdWords Blog, 20/03/07)





What's Google AdSense?
It's an advertisement program which displays text ads, image ads or video ads on websites.

Adverts are related to the content on each site and earn money for publishers when a visitor to their site clicks, or with PPA, performs a specified action in response to an advert.

Find out more about using Google to advertise.

Pay Per Action
At the moment PPA is only available to Google advertisers in the USA and on publisher sites (using AdSense). It shows once again Google's commitment to improving Internet advertising for advertisers and the quality of adverts for users.

PPA follows a pricing model affiliate marketers favour, where advertisers pay publishers only for results. In a sense, Google is creating its own affiliate network with the Pay Per Action model, strengthened by their recent $3.1 billion acquisition of DoubleClick whose Performics service includes affiliate marketing.

The new PPA pricing option passes more control to advertisers as adverts become all the more targeted, economical and measurable. Publishers make gains, too, as adverts displayed alongside content becomes more specific and less intrusive.

Contact MediaCo for online advertising advice.

Benefits of PPA for advertisers
As an advertiser, you can see which adverts convert customers better than others. Not only are adverts targeted to prospective customers within the AdSense realm, with PPA they can be perfected to convert customers.

Compared with static pricing options available to offline advertising, AdSense PPA ads are more attractive:

  • Targeted - Chose where to place adverts, which keywords to target as well as how much you wish to pay for the advert.
  • Non intrusive - Adverts are displayed alongside relevant material the visitor has actively sought out. PPA allows advertisers to state what they'd like the visitor to do ie: buy, click or download.
  • Economical - Advertisers can set levels for each action: $5 for a click through to the site, $10 for a purchase etc. So budgets become easier to manage.
  • More robust - The new system reduces the opportunity for abuse.

What PPA means for publishers
Website publishers who display AdSense adverts might be worried that profits may be reduced with the removal of a profit per click. However, the new pricing structure means adverts will become more specific, thus adding more value to visitors.

  • More control over adverts - New features allow publishers to view the type of ads, actions and companies to include on their site.
  • Better information - Google also encourages advertisers to provide a URL and information about their product and/or service so each publisher has more information about the types of companies they can promote.
  • Larger scope for profits - At the lowest level of management, publishers can allow Google to choose which adverts will appear, chosen from the highest performing adverts.

 

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