Google Launches Pay-Per-Action; a Threat to Affiliate Networks?

Tuesday, March 20th, 2007 by Andy Beal

Google Launches Pay-Per-Action; a Threat to Affiliate Networks?

If youâ€™re reading this post, then you can expect a flurry of news covering Googleâ€™s beta launch of its Pay-Per-Action (PPA) product for AdWords. Yep, after years of hinting, Google is finally ready to let us test their platform on a CPA (cost per action) model. (If this sounds familiar, reports surfaced back in June, that Google was offering a limited test of CPA)

The beta test is restricted to AdSense for content in the U.S., will run separate from the regular auction model, and you may not even get a chance to test it for a few weeks, while they roll it out. That being said, this is a significant expansion of the CPC (cost per click) model, with advertisers being given the option of paying when a customer buys a product, signs up for a newsletter, or completes any other actionable task on the advertiserâ€™s web site.

On the publishing side, AdSense publishers will be able to opt-in to display PPA ads from Google and even whether they wish to display a single ad, a cluster of ads or match to a specific keyword that is relevant to their page content. Publishers also get to preview the ads, including company name, logo etc, before the ads go live.

As the broker between the advertiser and the publisher, Google will take its cut of any incentive offered. For example, if the advertiser offers $2 per sign-up, the publisher may see only $1.50 offered for the same sign-up. Google will pass on to publishers the net-incentive only.

Publishers also get a new â€œtext link adâ€ format (I wonder what Patrick Gavin will have to say about that), which allows them to display JavaScript ads that appear as a single text link. Publishers will be able to search for text link ads that match their chosen text string. Perfect for bloggers looking to monetize their site, but would prefer to add embedded text links, rather than whole blocks of ads.

Now, hereâ€™s where my post title comes in to play.

A platform that allows advertisers to offer a reward based upon a sale or sign-up?

A platform that allows publishers to select text, flash or images when displaying advertisers incentives?

What does that sound like to you?

To me, it sounds like a clear threat to the likes of Commission Junction or LinkShare â€“ or any other affiliate marketing network. Google, for all intents and purposes, has just entered the affiliate marketing arena, with the battle cry that they can do affiliate marketing better than the affiliate networks can.

Now, I feel obliged to inform you that when I posed this suggestion to Rob Kniaz, product manager for Google’s advertising products, he was very quick to deny any intention to compete in the affiliate network space. “We think this is different from the traditional affiliate marketing industryâ€, said Kniaz. “[Itâ€™s an] extension of the current AdWords product”. Oh really? Kind of like how Google doesnâ€™t see itself competing with Microsoft’s office suite.

When I pushed Kniaz to explain why Google is so keen to distance itself from any associations with affiliate networks, his response was that the new PPA platform offered “more automation, more options, more control” than affiliate networks.

Sounds like fighting words to me!

UPDATE: You can view more details of PPA here.

Want more marketing news & views? Follow Marketing Pilgrim's Andy Beal on Twitter!

Similar Stories in: Affiliate | Forward:

Share this post

71 comments on “Google Launches Pay-Per-Action; a Threat to Affiliate Networks?”

Jeremy Luebke Says:

March 20th, 2007 at 11:20 am

OK I’ll make this a quick comment. I need to go find my jaw. It hit the floor and rolled off under the desk.

I seriously can’t wait to get my hands on this and see how they have implemented it.

I wonder if advertisers will have a way to let publishers select them as someone who they want to run ads for. The publisher must have great control to make this a profitable move.
Mark Barrera Says:

March 20th, 2007 at 11:43 am

The time has finally come. I see this as a fight in the making.

I expect that they will soon offer product images and other things to compete with the new AuctionAds and other affiliates now that they have a platform in place to support it.

Are there any screenshots anywhere showing how these ads look on a site?
Mike Mothner Says:

March 20th, 2007 at 12:08 pm

I am a little more reticent than others here to claim that a major blow was just cast against the “traditional” affiliate networks just yet. I think we will see this spread on a very limited basis and ultimately there will have to be something very compelling to bring both advertisers and publishers away from their existing networks. Unless Google’s implementation is far superior to the existing offerings I do not foresee a major shift occurring any time soon.

That said, when Google does something, they generally do it well (Gmail, Checkout) and the affiliate networks should definitely be watching this extraordinarily closely. And you can bet your ass that we are excited to test the beta.
Google AdSense und AdWords mit Pay-Per-Action Says:

March 20th, 2007 at 12:11 pm

[...] Via MP und SEW. [...]
Mark Barrera Says:

March 20th, 2007 at 12:24 pm

I agree with you Mike that it will be a slow spread, but once it does spread, it could be dangerous. I think that it will be easy to pull advertisers into the system because it allows them to control their costs whereas with AdSense it can be hit or miss on getting the ROI they require.

I also agree that Google is good with new products. Just look at the Google Apps. While it isn’t a big deal yet, it looks to be after announcing that they rolling it out to students in Africa. I think that this move and similar ones that are sure to come will put them in a great position to begin the battle with Microsoft and software companies.
Google Pay-Per-Action Launches for AdWords & AdSense Says:

March 20th, 2007 at 12:32 pm

[...] Andy Beal adds that the new PPA system will also include a text link style ad format which can be integrated into content: Publishers also get a new “text link ad” format, which allows them to display JavaScript ads that appear as a single text link. Publishers will be able to search for text link ads that match their chosen text string. Perfect for bloggers looking to monetize their site, but would prefer to add embedded text links, rather than whole blocks of ads. [...]
SEOrefugee Says:

March 20th, 2007 at 3:57 pm

Mike, I don’t think it will have to pull from existing networks to spread quickly. Google has thousands of advertisers that I’m sure would love to switch from their current PPC with them to a CPA basis or perhaps do both. I think Google will be exposing their advertisers to CPA, many of them for the first time or at least offer much more control than they had before.

Jeremy, it looks like advertisers will have to spell out what is require for a conversion and publishers will be able to browse via topic, keyword and who knows what other criteria.

I’ll stop rambling on but here’s my take on a few of the concerns surrounding this new program.

http://www.seorefugee.com/seoblog/2007/03/20/overcoming-objections-for -googles-pay-per-action/
Steve Morsa Says:

March 20th, 2007 at 4:52 pm

Good info and insight, Andy.

Though it may take a couple of years for them to fully feel the effects, this latest advertising initiative is in fact a direct attack on CJ, LS, and the other aff marketing firms.

There is, however, a hibernating elephant in the room…a number of PPA patent apps are working their way through the US PTO; some filed by the existing PPA players; which could throw a wrench in Google’s long term plans for this advertising arena…
Jeremy Luebke Says:

March 20th, 2007 at 4:54 pm

If I was Google, I’d use some of that cash sitting around to just buy any company that gets one of these patents to go through.
AdvaliantJivan Says:

March 20th, 2007 at 5:40 pm

I’m part of an affiliate network and I don’t see this as a major threat at all. One of the many advantages for advertisers when working with an affiliate network is the “impulse buy” factor that network are very good at. There are obviously many others but the good networks will adjust and compete very well with Google. There are a lot of click networks that are growing like wildfire even though Google dominates the ppc ad space.
Google’s Move Into CPA Validates The Affiliate Marketing Industry | Jim Kukral Online Marketing Consulting 1-888-BLOG-BIZ Says:

March 20th, 2007 at 6:59 pm

[...] Andy Beal’s Blog [...]
David Eaves Says:

March 20th, 2007 at 7:13 pm

I think allowing publishers to use single text links is a good move by Google, there would be alot more chance of me clicking a single text link, especially if it was contextual.
V7N Search Marketing News » Blog Archive » Google Testing Pay Per Action Network Says:

March 20th, 2007 at 7:14 pm

[...] A threat to affiliate networks? [...]
Google CPA will crunch lead gen arbitrageurs margins further « Lightspeed Venture Partners Blog Says:

March 20th, 2007 at 7:30 pm

[...] 2007 Posted by jeremyliew in Consumer internet, Lead gen, startups, start-up, Search, advertising. trackback Today’s release of Google’s Cost-Per-Action (CPA) beta has generated a lot ofhttp://www.webmetricsguru.com/2007/03/google_launches_pay_for_action .html. Most are focusing on the impact on affiliate networks such as Commission Junction or Link Share as the test is currently confined to Adsense ads that show up on the Google Publisher Network. [...]
Vinny Lingham’s Blog » Blog Archive » Google Launches Pay Per Action (CPA) Says:

March 20th, 2007 at 7:36 pm

[...] Search Engine Watch believes that Commission Junction’s days are numbered – I don’t think so!Â Andy Beal also has a similar view.Â We’ve been running CPA campaigns through Google for nearly 4 years now, and I think Google vastly under-estimates the risks and relationships at play with CPA marketing.Â The biggest concern though, is that Google’s internal arbitrage of CPC to CPA (which is what they’re doing, effectively), pushes prices CPC prices up in the short term, while they make mistakes that we’ve forgotten how to make, in our Clicks2Customers business. [...]
Google's Launches Pay-Per-Action; a Threat to Affiliate Networks? (Andy Beal/Andy Beal's Marketing Pilgrim) at BTT | Blog The Tech Says:

March 20th, 2007 at 7:43 pm

[...] Google’s Launches Pay-Per-Action; a Threat to Affiliate Networks? — If you’re reading this post, then you can expect a flurry of news covering Google’s beta launch of its Pay-Per-Action (PPA) product for AdWords. Yep, after years of hinting, Google is finally ready to let us test their platform on a CPA (cost per action) model. Source: Andy Beal’s Marketing Pilgrim – Internet Marketing Blog & Consultant Author: Andy Beal Link: http://www.marketingpilgrim.com/2007/03/google… Techmeme permalink [...]
Can Google Transform The Entire Web Into A Direct Market Machine? » Publishing 2.0 Says:

March 20th, 2007 at 7:44 pm

[...] As anticipated, Google has launched a “cost-per-action” advertising program that allows advertisers to pay only for specific results, such as a sale, lead, sign-up, etc. Andy Beal thinks this is a threat to online affiliate marketing, and surely it is. But Aaron Wall’s comment jumped out at me: If they push this as hard as they did AdSense or search it is going to teach advertisers and publishers to create efficient conversion oriented content and sales funnels. It will fundamentally change the structure of the web. [...]
Dave Davis Says:

March 20th, 2007 at 7:55 pm

Take a look at the terms though.
This one is really crazy:

How will my referral ads appear to users outside the U.S.?
Users located outside of the United States will see the ads in your referral unit that you specified when generating the ad code, just as US visitors do. However, please note that you will not receive payment for conversions that occur for users outside of the U.S. unless explicitly enabled by the advertiser.

And here is the kicker…. wait:
Can I use search engine marketing to promote my referrals campaign?
You may not use search engine marketing to purchase traffic for the specific and sole purpose of generating conversions, unless you have the express permission of the advertiser.

Are you for real?
Can Google Transform The Entire Web Into A Direct Marketing Machine? » Publishing 2.0 Says:

March 20th, 2007 at 8:07 pm

[...] As anticipated, Google has launched a “cost-per-action” advertising program that allows advertisers to pay only for specific results, such as a sale, lead, sign-up, etc. Andy Beal thinks this is a threat to online affiliate marketing, and surely it is. But Aaron Wall’s comment jumped out at me: If they push this as hard as they did AdSense or search it is going to teach advertisers and publishers to create efficient conversion oriented content and sales funnels. It will fundamentally change the structure of the web. [...]
Weblog Tools Collection » Blog Archive » Google Launches Pay-Per-Action Says:

March 20th, 2007 at 9:16 pm

[...] Google Launches Pay-Per-Action This new beta launch of Pay Per Action Ads from Google and AdSense has really gotten the affiliate marketing industry in a tiff (though I must be over estimating the reaction). In simple terms, you can setup keywords to display ads from, make them look like ordinary AdSense ads and when your user clicks the ads and performs a certain action, you get a cut. I love Andy’s spin on the issue. Of course the blogosphere is abuzz with this news. I know that Darren signed up for the beta test and I would love to hear some real feedback. Is this really another spin? (No Ratings Yet) Loading … [...]
Hip Hop Says:

March 20th, 2007 at 10:35 pm

I can’t wait to try this out,

hope to make a lot from this =)
lyndonmaxewell Says:

March 20th, 2007 at 11:52 pm

Seems like Google is expanding their reach in the advertising market. But PPA will be harder on the site of publishers, as not everyone who clicks on the ad will sign up.
Google Launches Pay-Per-Action at Best Warez Says:

March 20th, 2007 at 11:54 pm

[...] Google Launches Pay-Per-Action This new beta launch of Pay Per Action Ads from Google and AdSense has really gotten the affiliate marketing industry in a tiff (though I must be over estimating the reaction). In simple terms, you can setup keywords to display ads from, make them look like ordinary AdSense ads and when your user clicks the ads and performs a certain action, you get a cut. I love Andyâ€™s spin on the issue. Of course the blogosphere is abuzz with this news. I know that Darren signed up for the beta test and I would love to hear some real feedback. Is this really another spin? [...]
Jumping to Conclusions on Google’s Pay-Per-Action » Conversion Rater - web analytics, online advertising, and website publishing. Says:

March 21st, 2007 at 12:19 am

[...] My first reaction is that people are jumping to lots of conclusions about what this program means, what it will do, who it’s competing with, and what it will mean for advertisers, publishers, and arbitrageurs. [...]
Google Ventures into CPA (Pay-Per-Action) Advertising » Personal Insights on Web 2.0, Blogging, and Business Says:

March 21st, 2007 at 12:38 am

[...] My gosh, there are tons of people writing about this already (here’s the post on the Inside Adwords blog) — it’s dominating Techmeme. [...]
WeblogToolsCollection DE » Blog Archive » Google startet Pay Per Action Says:

March 21st, 2007 at 2:14 am

[...] Google startet Pay-Per-Action Ein weiterer Betastart, diesmal Pay Per Action von Google und AdSense hat die Marketingindustrie wirklich verÃ¤rgert (wahrscheinlich Ã¼berschÃ¤ze ich die Reaktionen aber nur). Vereinfacht gesagt kann man SchlÃ¼sselwÃ¶rter fÃ¼r Werbung definieren, diese wie gewÃ¶hnliche AdSense Banner darstellen und sobald ein Benutzer darauf klickt und etwas bestimmes macht, erhÃ¤lt man seinen Anteil. Ich mag Andy’s Sichtweise dieses Problems. NatÃ¼rlich ist die BlogosphÃ¤re wieder sehr dahinter. Ich weiss, dass Darren sich fÃ¼r den Betatest angemeldet hat, und ich wÃ¼rde gerne ein echtes Feedback hÃ¶ren. KÃ¶nnte das was werden? (No Ratings Yet) Loading … [...]
AdSense ve AdWords’de “dÃ¶nÃ¼ÅŸÃ¼m baÅŸÄ±na Ã¶deme” dÃ¶nemi » Acemi Blogcu Says:

March 21st, 2007 at 2:26 am

[...] Google Launches Pay-Per-Action; a Threat to Affiliate Networks? [...]
Affiliate Commissions » Two Men Enter - One Man leaves: Google rolls into the Affiliate Arena (”Beta” style) Says:

March 21st, 2007 at 2:33 am

[...] Two Men Enter – One Man leaves: Google rolls into the Affiliate Arena (”Beta” style) Affiliate Marketing, News by jake March 21st, 2007 Andy over at Marketing Pilgrim covers the breaking news about google’s new (.. well finally launched beta) Pay-Per-Action (PPA/CPA whatever the hell you want to call it). He covers it a lot more elegantly than I could. Check it out. This is sure to be interesting. I am really curious to see how the quality of advertisers and offers turns out. CPA’s rely on a tracking “pixel” to communicate back with the server when the appropriate action has been taken. What methods are being used to ensure the advertiser is properly placing the script that call’s back to google and say’s “HEY YOU? YEAH YOU! That click publisher A just sent converted into a sign up, pay them their cut”. There are so many malicious possibilities from the advertiser side that could screw over their publishers (synonymous with affiliates). This will have to be policed so heavily. Let me outline a simple way for an advertiser to screw a publisher: [...]
Uldis ZariÅ†Å¡ » Pay-per-action - Nozare.lv Says:

March 21st, 2007 at 5:22 am

[...] Ko tas nozÄ«mÄ“ interneta reklÄmas tirgum? ViedokÄ¼i atÅ¡Ä·iras. PiemÄ“ram, Endijs BÄ«ls, KÄ«rons DonahjÅ« un DÅ¾ordijs KÄrsvels ne bez iemesla uzskata, ka jaunais pakalpojums radÄ«s nopietni konkurenci esoÅ¡ajiem affiliate vai referral (partneru?) reklÄmas tÄ«kliem, kas darbojas bÅ«tÄ«bÄ pÄ“c tÄ paÅ¡a principa. SavukÄrt reklÄmdevÄ“jiem tas dos vairÄk kontroles pÄr to, kÄ viÅ†i tÄ“rÄ“ savu reklÄmas budÅ¾etu – galu galÄ, kÄda jÄ“ga maksÄt par klikÅ¡Ä·iem, kas Ä¼oti bieÅ¾i nemaz nepÄrvÄ“rÅ¡as reÄlos klientos un reÄlos dolÄros bankas kontÄ? [...]
Mateosquared Says:

March 21st, 2007 at 8:10 am

This is very exciting. One reason I do not see a quick move over is that Google will not provide the expertise and consulting services provided by companies like LinkShare. For most, I think the move over will depend on how much hand holding they need.

Like most Google products you are on your own; which for the most part is a good thing.

Who needs experts and consultants? Just kidding.
WebProNews Video Blog » Blog Archive » Google Launches Pay Per Action, Mozilla Firefox Update, Google’s KinderStart Case Says:

March 21st, 2007 at 9:05 am

[...] Google launched a beta test of its pay per action option for AdWords. Advertisers who prefer to pay Google based on something their visitors do, like make a purchase or generate a lead, can do that with text, image, or the new format text link ads they just announced. Andy Beal called the new program “a threat to affiliate networks” and thinks businesses like Commission Junction now face a clear threat from Google. [...]
Google AdSense gÃ¥r til angreb pÃ¥ affiliate-markedet Says:

March 21st, 2007 at 9:28 am

[...] Det nye program spÃ¥s som et frontalangreb pÃ¥ hele online-annoncebranchen selv om reprÃ¦sentanter for Google hÃ¥rdnakket benÃ¦gter det. [...]
Google Launches Pay Per Action | Blog Tips at Blog Bullet Says:

March 21st, 2007 at 10:29 am

[...] Google Launches Pay Per Action Published March 21st, 2007 in Advertising, Google Tags: Adsense, Advertising, beta, clickbank, Google, money. Over at Marketing Pilgrim there’s some news on Google’s new Pay Per Action Beta. Putting it simply,Â the userÂ sets up keywords to display ads from, make them look like ordinary AdSense ads and when your user clicks the ads and performs a certain action, you get a cut. [...]
Google spouÅ¡tÃ CPA a affiliate sÃÅ¥ - Webtrh Blog Says:

March 21st, 2007 at 10:32 am

[...] Google Launches Pay-Per-Action; a Threat to Affiliate Networks? [...]
Google Launches Pay-Per-Action Beta Test | PureBlogging.com Says:

March 21st, 2007 at 12:02 pm

[...] Serving Pay-Per-Action (PPA) ads through Adsense is not exactly the same as being an affiliate network but is Google now a threat to the Affiliate Networks. According to Andy Beal: “…after years of hinting, Google is finally ready to let us test their platform on a CPA (cost per action) model. (If this sounds familiar, reports surfaced back in June, that Google was offering a limited test of CPA) ” [...]
Google PPA Advertising - Affiliate-Eyez Killa! « Startup in San Diego Says:

March 21st, 2007 at 12:42 pm

[...] Andy Beal (Marketing Pilgirm) references a nice quote from a Google executive, â€œWe think this is different from the traditional affiliate marketing industry.â€Â There’s reason to be doubtful of the whole truth of this statement. [...]
Jimmy Daniels » Google’s CPA, or PPA, Network Says:

March 21st, 2007 at 12:53 pm

[...] Now, I feel obliged to inform you that when I posed this suggestion to Rob Kniaz, product manager for Googleâ€™s advertising products, he was very quick to deny any intention to compete in the affiliate network space. â€œWe think this is different from the traditional affiliate marketing industryâ€, said Kniaz. â€œ[Itâ€™s an] extension of the current AdWords productâ€. Oh really? Kind of like how Google doesnâ€™t see itself competing with Microsoftâ€™s office suite. Source: Google Launches Pay-Per-Action; a Threat to Affiliate Networks? [...]
Google Pay Per Action: affiliate marketing in disguise? at Catalyst Search Engine Marketing Blog Says:

March 21st, 2007 at 3:44 pm

[...] The big news around the SEM water cooler today is Google’s beta launch of PPA or pay-per-action ads. Although PPA ads are not new, (however, currently there is no network that compares in volume to Google) the ads differ form traditional AdSense ads, in that a user must click the ad and perform a specific action in order for the publisher (and Google) to get paid. The rub is, the advertiser must then inform Google if that user has performed an action, which could lead to fraud. Sound like Affiliate Marketing to you? I bet it does to the folks at CJ and Linkshare. Here’s what the FAQ at Google has to say. Pay-per-action advertising is a new pricing model that allows advertisers to pay only when specific actions that they define are completed by a user on their site. Rather than paying for clicks or impressions, advertisers can choose to pay when a user makes a purchase, signs up for a newsletter, or completes any other clearly defined action that they choose. Pay-per-action ads are eligible to appear on publisher sites in the Google content network, and publishers can choose specific pay-per-action ads that are relevant to their site to run in new ad units that they create. [...]
Google Threatening Affiliate Programs : The JEHM Net News Says:

March 21st, 2007 at 5:23 pm

[...] Read More [...]
Making money online blog — eProfitNews.org/blog » Blog Archive » Google adds pay-per-action Says:

March 21st, 2007 at 7:09 pm

[...] MarketingPilgrim.com [...]
Andy Beard Says:

March 21st, 2007 at 9:05 pm

One of the biggest advertisers on Adwords are affiliates.

Affiliates do a good job of targeting buying traffic better than merchants, and thus make money.

Merchants frequently dont provide conversion tracking for affiliates, and the conversion tracking that is available isn’t workable with this system.

This sound like a great system for Adwords arbitrage to me, because it can’t work well for the long tail in any other way.

The strange thing is Google might earn less money from this.
Google Adsense Beta Test CPA Ads » SELaplana Says:

March 22nd, 2007 at 1:24 am

[...] It’s just actually the expansion of Google Adsense on its referrer program which publishers are paid through CPA. And based on Andy Beal’s pronouncement, it seems that Google is trying to compete almost all Advertising companies that exist online from selling text links (as of TextLinkAds), products in CPA (serveral affiliate companies like PC Security Shield), contectual ads (like Yahoo!). [...]
Google Ads Themes to Personalized Homepage and Launches PayPerAction « Thought Works Says:

March 22nd, 2007 at 7:49 am

[...] Google has previously denied any foray into affiliate network space, but with this launch they have really entered the club in a big way. Also see Andy BealÂ´s take on this. The PayPerAction FAQ is here [...]
mutednoise » The End of Affiliate Programs? Says:

March 22nd, 2007 at 8:16 am

[...] This brings us to Google’s announcement earlier this week of a new ‘pay-per-action’ program – essentially what affiliate programs do. Andy Beal, writing for Marketing Pilgrim, states: What does that sound like to you? [...]
Internet & Online Marketing - PPC, SEO & E-Gain - News about Online Marketing - SEO/PPC/Online PR and more » Pay per action launched by search marketing giant Google Says:

March 22nd, 2007 at 10:09 am

[...] Google PPA [...]
Jay Sears Says:

March 22nd, 2007 at 1:08 pm

For web publishers, this is another Google trojan horse. First super-secret rev sharing and now all the risk is shifted to the publisher with the CPA model.

Why shouldn’t Google be shouldering the risk? Continue to give advertisers the pricing control they have always had from ad networks–CPM, CPC, CPA but give pricing control (CPM) to publishers and let all those smart quants at Google figure out the math.

Web publishers need a virtual Norma Rae!
Dragan Varagic Blog » Pay-Per-Action will become mainstream Says:

March 22nd, 2007 at 4:06 pm

[...] There are significant number of blog posts arguing that the Google’s move to PPA market represents the threat to Affiliate Marketing networks (e.g. cj.com). For example, Andy Beal said that “Google, for all intents and purposes, has just entered the affiliate marketing arena, with the battle cry that they can do affiliate marketing better than the affiliate networks can.” [...]
Will PPA ease out PPC on Google Adsense? » @ YugaTech | Philippine Technology News & Reviews Says:

March 23rd, 2007 at 1:15 am

[...] A few days ago, Google Adwords introduced the new pay-per-action (PPA) advertising model on top of the existing pay-per-click (PPC) or pay-per-impression (CPM, site-targeting). Google Adsense ad inventory will then reflect this new development and PPA could potentially take the lead in Google’s ad model. Pay-per-action advertising is a new pricing model that allows advertisers to pay only when specific actions that they define are completed by a user on their site. Rather than paying for clicks or impressions, advertisers can choose to pay when a user makes a purchase, signs up for a newsletter, or completes any other clearly defined action that they choose. Pay-per-action ads are eligible to appear on publisher sites in the Google content network, and publishers can choose specific pay-per-action ads that are relevant to their site to run in new ad units that they create. {source} [...]
Startup Meme » Google Ads Themes to Personalized Homepage and Launches PayPerAction Says:

March 23rd, 2007 at 12:42 pm

[...] Google has previously denied any foray into affiliate network space, but with this launch they have really entered the club in a big way. Also see Andy BealÂ´s take on this. The PayPerAction FAQ is here [...]
Google Releases Pay-Per-Action - Should Affiliate Marketerâ€™s be Scared? | LevelTen Blog Says:

March 23rd, 2007 at 3:42 pm

[...] Should Affiliate Marketerâ€™s be Scared? Although I am not an affiliate marketer, I do not agree with < a href=”http://www.marketingpilgrim.com/2007/03/google-adwords-pay-per-a ction-launches.html”> Marketing Pilgram Andy Beal that this new format will be a threat to affiliate marketers. [...]
This Week In SEO - 3/23/07 - TheVanBlog Says:

March 23rd, 2007 at 8:37 pm

[...] Googleâ€™s Launches Pay-Per-Action; a Threat to Affiliate Networks? [...]
Google lança novo serviço: Pay-Per-Action at Emanuel Felipe .NET Says:

March 23rd, 2007 at 10:36 pm

[...] Post (em inglês) um pouco mais completo sobre o assunto: Google Launches Pay-Per-Action; a Threat to Affiliate Networks? [...]
azrin Says:

March 24th, 2007 at 10:36 am

At least there is a fool proof way to earn a decent living now.

Azrin @ http://www.azrin.net
Google neues “Pay per Action” at Punctilio Says:

March 25th, 2007 at 4:07 am

[...] Einen ausführlichen Bericht gibt es hier. via WeblogToolsCollection · Gelesen: 1 · heute: 1 [...]
Affiliate Marketing Blog - RealTimeAffiliateMarketing.com » Blog Archive » Google CPA Program Goes Into Beta Says:

March 25th, 2007 at 7:06 am

[...] Marketing Pilgrim Random Musings TechCrunch Web Publishing Blog [...]
Lin Says:

March 29th, 2007 at 6:45 am

I personally like pay per click advertising a whole lot better than pay per action. I don’t know about you but I’ve always made more money from adsense and similar programs than I ever did with commission junction and linkshare combined.
Webmaster Money Says:

April 9th, 2007 at 3:16 am

Well there is always something good comming from Google. I am just scared that this big company will do too many businesses so the quality will be getting worse.
Anyway competition is always good.
Google Pay Per Action: affiliate marketing in disguise? at Catalyst Search Marketing Blog Says:

April 9th, 2007 at 7:41 pm

[...] The big news around the SEM water cooler today is Googleâ€™s beta launch of PPA or pay-per-action ads. Although PPA ads are not new, (however, currently there is no network that compares in volume to Google) the ads differ form traditional AdSense ads, in that a user must click the ad and perform a specific action in order for the publisher (and Google) to get paid. The rub is, the advertiser must then inform Google if that user has performed an action, which could lead to fraud. Sound like Affiliate Marketing to you? I bet it does to the folks at CJ and Linkshare. Hereâ€™s what the FAQ at Google has to say. Pay-per-action advertising is a new pricing model that allows advertisers to pay only when specific actions that they define are completed by a user on their site. Rather than paying for clicks or impressions, advertisers can choose to pay when a user makes a purchase, signs up for a newsletter, or completes any other clearly defined action that they choose. Pay-per-action ads are eligible to appear on publisher sites in the Google content network, and publishers can choose specific pay-per-action ads that are relevant to their site to run in new ad units that they create. [...]
affiliate network blog Says:

May 1st, 2007 at 7:56 pm

I think that this is a good thing for the affiliate marketing industry. Especially because I know Google is going to have terrible service…and people will get fed up with them and go with the small guys.
Google lança novo serviço: Pay-Per-Action - Emanuel Felipe .NET Says:

June 29th, 2007 at 12:48 am

[...] Post (em inglês) um pouco mais completo sobre o assunto: Google Launches Pay-Per-Action; a Threat to Affiliate Networks? [...]
geri Says:

July 2nd, 2007 at 8:23 pm

I was looking into this PPA program today. Only to find that it is currently closed. You must also have used AdWords CPC and have had at least 500 clicks in the last month. So since I get great organic results on my three websites I have never needed any CPC.
However, I am going to be offering SEO seminars and phone consulting and I thought that I would look into this. Time for a new idea!
geri Says:

July 8th, 2007 at 8:15 pm

I think PPA is the greatest thing since sliced bread… I can’t wait till it becomes available for my websites. Since I have never used PPC I might have to wait a while… I quess that’s a disadvantage of being into only organic SEO.
Google Launches Pay Per Action | Gylnns Ventures Says:

July 22nd, 2007 at 8:28 pm

[...] Google Launches Pay Per Action Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages. [...]
Study Guide Says:

July 23rd, 2007 at 10:19 am

This was really great news. I hope PPA will benefit as much as I think it will.
ScamFreeMoneyMaker Says:

September 21st, 2007 at 1:24 am

but how it works really? since the publisher are only paid once action are taken only free sign up would benefit publisher.

got the feeling that nowadays people are taking longer and longer time to buy things on the Net. it only favor advertiser. but still i believe this new program fare better than current affiliate marketing setup at least in the analytic data area. google provides good services in this area.

i’ve given the chance to test this program but most of the available product still not very tempting.
What’s Happening With Pay Per Action? Says:

October 24th, 2007 at 8:53 am

[...] http://www.marketingpilgrim.com/ Obviously, Google doesn’t want to be seen that way but really, the pay per action concept is [...]
» Pay per action going beyond Sign-ups - Scotland SEO Blog » Blog Archive Says:

December 10th, 2007 at 11:31 am

[...] keyboard is now a need and no longer will it be a matter of making adsense goes without a reason. (Source) Now, I feel obliged to inform you that when I posed this suggestion to Rob Kniaz, product manager [...]
ImNiche Says:

December 18th, 2007 at 12:48 pm

I think it would take a long time to kill the affiliate networks. A lot of people would rather deal directly with an advertiser than have Google as the middleman.
Kevin Kris Says:

January 14th, 2008 at 9:07 pm

Google bought double click and got performics.com
as part it. Performics is a affiliate marketing company like CJ. So they might have integrated some stuff into CPA.

Anyone who has beta id can post screenshots here?/
This Week In SEO - 3/23/07 | TheVanBlog Says:

January 29th, 2008 at 11:53 pm

[...] Google’s Launches Pay-Per-Action; a Threat to Affiliate Networks? [...]
Google Launches Pay-Per-Action; a Threat to Affiliate Networks? - WickedFire - Affiliate Marketing Forum - Internet Marketing Webmaster SEO Forum Says:

February 13th, 2008 at 4:18 pm

[...] this article is copied word for word from Google Launches Pay-Per-Action; a Threat to Affiliate Networks? __________________ Join Firelead Affiliate [...]

Marketing Pilgrim