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It might also involve an additional level of
complexity in the ad network. The advertiser may not confirm the action
and may evade payment of the fee. So the webmaster would need to track
the action involved in the clicks that has occurred.
Experts felt that, Google ruled the web in such a way that even its
pilot model would bring in true repercussion. Google was not the first
to use the CPA ad pricing model; companies including eBay, LinkShare,
Snap, ValueClicks, had already been selling ads using this model.
Despite being a relatively late entrant, Google's sheer size and
presence would mean that if it opted for the new ad pricing model this
would have far reaching implications for the online ad industry.
However, some experts argued that the CPA model was far from perfect and
Mayer's words should not be taken seriously. The potential problems with
the CPA model were so many that Google might never replace its CPC model
with the CPA model, they said.
Additional Readings and References
1. "Google Tests Cost per Action," www.clickz.com,
June 22, 2006.
2. "A New Way to Pay- Google Expands Pay per Action for Google AdWords", www.google.com, June 21 2007.
3. "Google Tests an Ad Idea: Pay Only for Results," www.nytimes.com,
June 21 2007.
4. "Expanding Google PPA Beta Test," www.seo-consulting-group.com, April
3, 2007.
5. Bryan Gardiner, "Google Seeks 'Holy Grail' of Cost per Action Ad
Pricing," www.wired.com, August 23, 2007.
Cases on Related Topics
1.
Google and the 'Click Fraud' Menace
2.
Rovion's InPerson Technology: Changing the Face of Online Advertising
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