Google is experimenting with a new idea. As an advertiser, you only pay if you get the desired results. If not, it’s on the house. According to the company’s remarks, advertisers will only be charged when an advertisement results in the consumer’s taking an action (i.e. buying a product) as opposed to the existing methods of paying based on the number of clicks or number of views.
“We’re optimistic that it will be something that will be very compelling for advertisers,†said Susan Wojcicki, vice president of product management at Google. Ms. Wojcicki said the system would also give participating Web publishers a wider choice of ad types for their sites.
The ‘cost-per-action’ model is more appealing for advertisers since it allows them to choose what kind of action they want to pay for (i.e. download, purchase, subscription), and consequently reduces their risk (since they aren’t billed for ineffective ads).
The New York Times has further commentary.
Originally posted on March 23, 2007 @ 2:41 pm
Print media has gone the way of dinosaurs, newspapers and and magazines are closing shop and the smart ones are heading online. As the face of journalism changes and we embrace new mediums for disseminating information, how should journalism education adapt?
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