Google Moves Toward CPA?

According to CNET:

“Marissa Mayer, Google’s vice president of search product and user experience, gave her keynote presentation…. [and said] Google is making moves towards cost-per-action as a more ideal auction-based pricing model, but she also pointed out that it’s a long way away.”

That’s bad news for two major constituencies. One, websites that are part of Google’s publisher network. The current pay-per-click structure already short-changes the value of their audiences and traffic; cost-per-action / -transaction goes a step further in reducing revenues per thousand pageviews. Two, brand advertisers, who look to the leading internet media firm to help make the web a better platform for building awareness and creating demand. This news seems to indicate Google remains more comfortable in the transactional arena of direct response.

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