“The Google AdSense team would like to invite you to test a feature that provides you with a new way to earn revenue from your website by hosting ads that are compensated based on a Cost-Per-Action [CPA] basis. These ads are very different in that you will be able to choose amongst a selection and you will also have more flexibility in promoting them,” so goes the latest Google “invite to a test.”
David Jackson says he received the notice from Google with a description of the new service:
These ads will…show across a separate network, the Content Referral network...We are giving you more flexibility in saying things like “I recommend this product” or “Try JetBlue today” next to the CPA ad unit…They pay you whenever a site visitor performs a specified action, such as generating a lead or purchasing a product.
Google’s determination to continually drive higher click-throughs and higher ad unit pricing is one of the foundations of its unprecedented financial success. Google engages in a “virtuous cycle” of perpetual refinement to its core “Sponsored Link” product with the goal of strengthening its control over the ad auction process to maximize ad revenues through an optimal bid price/click through mathematical formula based value proposition.
The new Cost-Per-Action based Content Referral network supports Google's goals and takes them two steps further.
1) The new CPA system yields more "value" to an advertiser, because a qualified "action" is more valuable to an advertiser than a mere "click," and yields more revenue to Google as the advertiser must pay Google for the extra value received.
2) Also, for the first time, Google undoubtedly hopes to “close the loop” by driving not only a more valuable click to a Website, but also by leading the user to an actual sales transaction.
Google is not content to leave any part of the “advertiser to user to sale” revenue stream on the table. Google aims to escort the user it brings to the advertiser’s table all the way through to the targeted sale and then enable the transaction, for a fee, via its impending online payment tool, GBuy.
Moreover, Google will most likely also seek to remain in the post-sale loop, and retain a part of the post sale revenue stream, through customer service, e-mail reorder alerts, special sales notices…
FOR MORE ON GBUY SEE: Google payment system to 'automate advertiser click cycle, the rest is history' and Google Content Referral Network vs. eBay Affiliate Network and "Google June 28: Countdown to GBuy revolution, or to latest Google test, beta, invite…"