» Its Finally Here, Google’s PPA System

Google has launched its Pay-Per-Action (PPA) system in beta form (US only). I am usually invited to test new services such as this, but I haven’t gotten any phone calls from my Google rep yet about this. I’ll give her a call next week if I haven’t heard anything yet to see if its really closed to the US advertisers/publishers or if some strings can be pulled ;). I’ve been waiting for this to be publicly launched since they first started testing it in May 2006. As an advertiser on Google, a PPA model is best because you are only paying for leads, and not for people to click your ads. It offers advertisers more control over advertising spending than a Pay-Per-Click (PPC) model. Publishers can also potentially make more money as advertisers will be willing to pay more for quality leads.

Google’s PPA system functions just like other affiliate marketing networks. Instead of being paid per click however, publishers will now get paid after a user performs some sort of action (such as purchase an item from an e-commerce site). Visitors that click on PPA ads and perform an action within 30 days will result in the publisher being paid. In addition to text and graphic PPA ads, Google is now offering text link ads on the PPA model. Too bad Google doesn’t display their text link ads as straight html :)

What is the text link format for pay-per-action ads?
Text links are hyperlinked brief text descriptions that take on the characteristics of a publisher’s page. Publishers can place them in line with other text to better blend the ad and promote your product.

For example, you might see the following text link embedded in a publisher’s recommendatory text: “Widgets are fun! I encourage all my friends to Buy a high-quality widget today.” (Mousing over the link will display “Ads by Google” to identify these as pay-per-action ads).

Though the maximum length of a text link is 90 characters, we’ve found that shorter links perform better because they allow the publisher use the link in more places on her/his site and in different context. The maximum length is 90 characters but less than 5 words is best. Even better, just use your brand name to offer maximum flexibility to the publisher.

Judging by the description, it looks like Google’s text link ads will look and feel like ads delivered by IntelliTXT.

There was speculation that Google will move from a PPC based system to this newer PPA model, but I highly doubt it as the PPC model built Google into the behemoth it is today. Click fraud may be rampant, but Google is Google because of it. Don’t hold your breath for Google to get rid of the system that funds everything. I will try to post a follow-up to this once I can get access to the beta program.

More information on Pay-Per-Action at the AdWords Blog
More information on Pay-Per-Action at the AdSense Blog

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