According to a report in Media Post today, Google chas begun soliciting advertisers to participate in an “experiment” that puts information, such as size and price, about products in search results. The ads will be served to a select group of people searching the Web in the United States at first.
The ads are not billed by the click, similar to the traditional pay-per-click (PPC) model, but rather when the person purchases the item or “performance based,” meaning that Google would only get paid when someone made a purchase through the ad.
The report further states that although a Google spokesperson confirmed the “test,” he declined to provide details on the product listings because it has not gone live.
“At Google, we’re constantly experimenting with new features, tools and visual representations to improve the user experience and usefulness of our ads,” says a Google spokesperson. “In accordance with that philosophy, we’re planning a beta test to show richer product information in the ads for shopping-related queries. This test will only be visible to a small number of U.S. users.”
The downside to the advertisers, it that new model can have high commission rates, which could cause them to spend even more than on traditional PPC if they sell products
The Godzilla of affiliate networks.
I’ve long thought pay per click’s days as king of Internet advertising were numbered — just too hard to control click fraud. I’m sure advertisers will be much more willing to pay per action assuming they know they’ll always make a profit when that action is taken. I largely stopped using Adwords myself because pay per click is too unpredictable.
IMO there will always be a place for both, someone might be willing to pay .10 a click, but not give Google 20% of the sale, Google shareholders are not going to want to have just pay for performance when they know the money “THEIR” company makes with just using PPC
Agree w/DotW…this is not an “one or the other” proposition for the online ad marketplace.
Both approaches have their advantages…and their drawbacks.
PPC will be with us forever.
So this will go something like this, whoever gives up the biggest revenue share (commission) get’s the top spot with Google. This Pay Per Peformance auction will start at the very affordable 5%-10% affiliate commission rate(remember .05 to 0.10 clicks) and will slowly get bid up. Should be excellent for those who get in early on the auction.
This is good news. Google CPA. Now if this were integrated into google for domains, we’d be able to take advantage of this with our parked domains….
This is good news. Google CPA. Now if this were integrated into google for domains, we’d be able to take advantage of this with our parked domains….
Sorry, forgot to add great post! Can’t wait to see your next post!
like others said its just another option for advertisers and another way to reach advertisers. Its never going to substitute one model of another. There will always be room for PPC just like there is room for CPM networks. CPM networks did not die with 2000 web crash, they simply got better technology behind them.
PPC will always be around like Bing to Google.
But they tested this 2006 already? According to this blog:
http://www.seroundtable.com/archives/003988.html
Or what do I miss here?
Google tries to force any customer that walks into a brickstore to buy something, or maybe charge a fee for any person looking at a street billboard, it just doesn’t work that way. PPC is cheap as the air we breath and domainers are screwed. Domains catch the eyeballs for nothing, something big must happen to bring down Google’s monopoly to dictate human behavior.
crinux.com
John
Interesting.
Can’t find anything else on this so maybe although the notices went out the testing never occurred.
This new story and Google’s test was confirmed by Google.
Well, there is another interesting model out there dubbed PPP or pay-per-position. It works off a flat rate per 24 hour period and starts at a $1 buck a day. The new search engine tyBit gives you a free trial and shows you all the user agent info that extracts the data from the log files. Kills click fraud and bots – Reece Berg and crinux. However, does not appear it will make much money because it is pretty cheap.