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Google has launched a beta test of pay-per-action advertising, a new pricing model that allows advertisers to pay only when predetermined actions are completed on their site.

Online advertisers are being drawn in increasing numbers to results-driven campaigns, as it means not ever paying for ineffective advertising.

Publishers however, like the major newspapers in the UK, may be more reluctant to adopt a model that could reduce expected revenues.

The model gives advertisers the option of paying when a customer makes a pre-determined action - which could be signing up for a daily mailout, newsletter or taking a download.

Advertisers have greater control using this system, claims Google, because they can define the value of a completed action, while publishers can decide which campaigns they are willing to run on their sites.

Pay-per-action advertising is available to US advertisers. Google says it will begin adding advertisers and publishers to the beta test in the coming weeks.

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Written by
Oliver Luft

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