Google Confirms Testing New Ad-Pricing Model - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Google Confirms Testing New Ad-Pricing Model

Advertisers will pony up when consumers buy a product, qualify as a sales lead, or sign onto a mailing list.

Google Inc. on Thursday confirmed that it's testing a new ad-pricing model that would have advertisers pay a fee when online consumers buy a product, qualify as a sales lead or sign onto a mailing list.

Testing of the new model, often referred to as "cost-per-action," was first reported in The Wall Street Journal. The new pricing is seen as a way to deliver a better return on investment to advertisers, and as a means to combat click fraud, the newspaper said.

Click fraud refers to the clicking of an ad link to either drive up the cost to advertisers or the revenue to publishers. Competitors sometimes perpetrate the former, while the latter by unscrupulous Web sites.

"We are currently testing a cost-per-action pricing model to give advertisers more flexibility and provide publishers another way to earn revenue through AdSense," Google said in an emailed statement. "We're pleased with how the test is progressing and will continue to gather feedback from advertisers and publishers."

The Mountain View, Calif., search engine refused to provide further details, but the Journal reported that the new ad pricing would be in addition to the services Google currently provides.

Google sells ads based on bids for keywords used by people during Web searches. The search engine collects a fee every time someone clicks on an ad listed in search results. So-called contextual search advertising provides a major portion of Google's revenues.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
10 Ways to Transition Traditional IT Talent to Cloud Talent
Lisa Morgan, Freelance Writer,  11/23/2020
What Comes Next for the COVID-19 Computing Consortium
Joao-Pierre S. Ruth, Senior Writer,  11/24/2020
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Register for InformationWeek Newsletters
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll