Good news for the Google Advertisers and probably a bad one for the Publishers, especially for the MAF (Made For Adsense) site owners. Google launched Pay Per Action Beta today. Initially this is a limited launch for their US only customers, so others have to wait further more to test it.
What is called PPA (Pay per Action)?
It is actually a new pricing model for the old PPC one, here instead of Clicks, Actions costs for you. In this model the Advertisers get charged only when completion of specific Actions that are already defined by them. It can be a purchase or a sign-up or any other defined actions rather than paying for Impressions or Clicks.
The Advertiser can determine the price per Action and also can set the daily budget.
As the first impression I think this is a good option for the Advertisers, and a better option against the Click Fraud.
A probability of disadvantage:
Your ads will get displayed in the Content Network and not in the Search Engine Results pages. This may cause several raised eyebrows since most of the expertise advices shows thumbs down to the Content Network due to incredibly poor ROI. Until a test has been done we can’t predict anything, so may not be the same as before.
Advertisers have to start with a specific flat price instead of a percentage based scheme.
For the Publishers it may not be a better option since it’s not for the click you get paid. Your payment depends on how efficient that Ad is in getting conversions.
A word from the Author:
You can go through the following resources to learn more about PPA. In most of the Forums the discussions are already started so in coming days we will be hearing more.