Thursday, June 22, 2006

Google tests new ads

CNET "Google is testing a new online-ad system in which advertisers pay only when their ad leads to a purchase or a sales lead, the company confirmed on Thursday.
The new cost-per-action system will be a separate ad auction system from the current cost-per-click setup, said Google spokesman Brandon McCormick. The ads are being offered through Google's AdSense unit, which places ads on Web sites.
AdSense publishers will be able to choose from a selection of ads and will have more flexibility in promoting the ads, according to Google.
Because they'll be tied to a purchase, the new ads are expected to be auctioned at higher prices than cost-per-click ads, which cost advertisers every time an ad is clicked on whether or not it leads to a sale. The ads also would cut down on click fraud, which occurs when ads are clicked on without there being any intention of making a purchase. "

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