Posted June 26, 2006 9:30 am by with 3 comments

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Over at B2Blog, Dave J has concerns about Google’s trial of a cost-per-action model for AdSense.

The obvious technicality is that for a lot of smaller & B2B businesses, the most common ‘action’ coming from their website is a phone call. And these are the people who also are paying much more per-click in their current PPC campaigns. Which means they have a lot more at risk for click-fraud yet cannot rely on CPA to help due to the untraceable phone call.

He also doubts whether AdSense CPA will be able to get enough volume in order to spread its reach to small B2B firms.

  • Anonymous

    One wonders what Google’s intentions really are? The Cost-Per-Acquisition model removes advertiser’s risk, and places accountability squarely on the shoulders of the Ad Sense affiliate. From my vantage point, offering CPA to the merchants who can effectively track conversions from their online business model, offers Google access to great information. Google controls the rank based on popularity and revenue, so they won’t feel the pinch of lost revenues to any huge manner. More importantly, they can track and react to affiliate fraud in a more expeditious manner. After their 90 million dollar click fraud settlement, it may prove a means of survival for Ad Sense.

    Patrick Hopf

  • Patrick

    The 90 million settlement is a steal for them. It does nothing to finger them for clickfraud and limits liability moving forward. This CPA thing is ripe with problems and I don’t see a webmaster wanting the headaches from it. From my position, it looks like affilate programs from the late 90’s where you only got paid if someone bought a membership. They didn’t last and I don’t see this lasting either.
    Patrick is correct in seeing Google’s strong desire to free themselves from the Adsense revenue stream but this will not be the golden goose they would like.

  • Andy, thanks for the mention!