According to David Jackson from Seeking Alpha, Google has invited a few publishers to take part in a CPA (Cost-Per-Action) advertising program experiment -- an addition to the CPM (Cost-Per-Thousand) and CPC (Cost-Per-Click) models that currently exist.
The invitation advertisers received contained an attachment with the following information:
How do I participate in the CPA test?
Simply reply to the invitation email and express your interest in participating and we will send you some sample CPA ads. You can then choose which ads you’d like to host and we will send you the code to copy and paste on to your site. It’s just that easy!
What can I do to optimize my revenue from the CPA ads?
While we encourage you to experiment as much as possible with these ads on your site, here are some general tips on implementing a CPA ad:
1) Ads that blend in with the site and are placed prominently tend to perform better. Look to integrate the ad within the page.
2) Ads that are relevant to the interest of your site visitor also tend to perform better. For example, if you have a travel site, having ads relevant to airline travel would generate higher interest. For more tips on increasing revenue, please see our optimization tips page at: https://www.google.com/support/adsense/bin/static.py?page=tips.html&sourceid= aso&subid=ww-ww-et-asui&medium=link
How do I get paid?
You get paid whenever a site visitor clicks on the ad on your site AND performs a specified action, such as generating a lead or purchasing a product.
Do these compete with regular content ads?
These ads will not compete with contextually targeted ads. Instead, they will show across a separate network, the Content Referral network. To place one of these ads on your site, you can set up a new ad unit that supports any of our current ad unit sizes.
How much could publishers expect to earn with this CPA test?
How much a publisher will earn will depend on a number of factors about the publisher and advertiser, including whether the ads match the topic of the site, and level of interest of their site visitors. We have tried to match the appropriate publishers with advertisers for this test.
Will CPA offerings compete with my current AdSense revenue?
We expect that the CPA test will offer ad units that will expand publishers AFC revenue because the ad units are separate and appeal to different types of users. These CPA ads are also additional inventory to your existing AFC ad units.
How can I promote the CPA ad unit?
Since this is a test and these CPA ads are not regular ad units, we are giving you more flexibility in saying things like “I recommend this product” or “Try JetBlue today” next to the CPA ad unit. However, you should still not incite someone to click on the ad, so saying “Click Here” is not ok.
Where do these CPA ads comes from?
The CPA ads come from a limited group of high quality advertisers that are interested in displaying ads on a CPA basis. They pay you whenever a site visitor performs a specified action, such as generating a lead or purchasing a product.
Will I be able to see reports within my account?
When the test begins, you will receive weekly email reports of conversions you have accrued and your total revenue within the CPA test.
When investors or the press have a chance to ask Google questions, there always seems to be discussion around "click fraud" -- a real problem that is hard, if not impossible to eliminate.
This new CPA model could be Google's attempt to address that problem and help maintain the trust of investors and advertisers,
however I really don't think the addition of a program like this can solve the click fraud problem. Why would a publisher who makes an incredible amount of money doing click fraud voluntarily switch to a CPA advertising model? The only way it could eliminate click fraud would be if Google completely replaced the AdSense program as it exists today with CPA -- something I don't see happening.
The more likely scenario is that Google is throwing something else against the wall which, if successful, could generate a large amount of new advertising revenue. What do you think? Is this Google's attempt at fighting click fraud? Will it be successful?