Google’s New Pricing Model

Google_AdwordsGoogle has now introduced a new pricing model in Australia (in beta mode) around pay per performance. This follows in the trends of other models available online such as affiliate relationship which allow advertisers to pay on a performance basis that moves away from just clicks.

One important thing to note is that the pay per action ads are only available to be displayed on publisher’s sites, they won’t appear in Google search results themselves. As well as this, in order to use Pay per Action you must have your tracking setup properly (as this is how the action is verified). Anyone using AdWords currently has the option to setup their tracking by inserting code on your site and this should be used in all cases anyway as it allows you to see true ROI.

Google’s pay per action require a new ad format to be setup (a text link) and like traditional AdWords you can bid what you are willing to pay for that completed action.

If you are eager to try them out, they are still in beta testing however if you have a current Google AdoWords account, you may have been invited to participate. If not, I’m afraid you’ll have to wait until more invitations are issued.

You can find out more about Google Pay per action in the Google AdWords Help.

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