Tuesday, September 04, 2007

Google's New CPA Ads Need Tweaking

Google's Recent Referral Advertising AKA CPA (Cost Per Action) ads are hoping to raise the bar for both advertisers and publishers. It pays publishers a commission when people take an action like -- filling out a form or buying something. The commissions are usually much higher than what a publisher would make with hosting just pay-per-click ads.

In theory it also hopes to help some netpreneurs side step the dreaded "click-fraud problem" characteristic of the pay-per-click mode of advertising. Google will have a safer way for some advertisers to advertise. It seems like a win-win for everybody.

Nevertheless, many people (including me) have never really profited from this type of advertising. This has been the case whether using Commission Junction DBA www.cj.com in the past or now with Google's new venture down this path. This may have much to do with advertisers not being adept enough at the art of getting people to fill out forms or buy things.

I have no major problems getting people to fill out forms on my sites. This makes me skeptical of some advertisers motives. You have to know how to sell what you are offering. So I suspect some companies are not really trying to get people to take action because they are getting free brand advertising from Google.

Google will probably need to have some type of performance standard where companies that cannot get people to take action -- have to drop the campaigns or redesign them. I will give the program a little longer to see results before I pull the referral units. However I think you should test Google referrals for yourself it may work out for you.

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