Sunday, January 6, 2008

AdSense Pay-Per-Action: End Of Click Fraud?

AdSense Pay-Per-Action: End Of Click Fraud?

It is bound to happen one day. As click-fraud issues mounting up, AdSense is moving towards affiliate marketing style, introducing cost-per-action ads.

David Jackson of SeekingAlpha reports that Google is inviting a selected group of AdSense webmasters to test out the new Cost-Per-Action (CPA) ads. Quoting reprint of Googles mail:

How do I get paid?

You get paid whenever a site visitor clicks on the ad on your site AND performs a specified action, such as generating a lead or purchasing a product.

And unlike traditional ads, webmasters are allowed to choose what products to display and to actively promote it.

How can I promote the CPA ad unit?
Since this is a test and these CPA ads are not regular ad units, we are giving you more flexibility in saying things like I recommend this product or Try JetBlue today next to the CPA ad unit. However, you should still not incite someone to click on the ad, so saying Click Here is not ok.

Currently, AdSense offer pay-per-click (CPC) ads and pay-per-view(CPM) ads to the publishers, both with their own problem. CPC ads pay publishers when some one clicks on the ads. This has been long pointed out as a major problem as it creates incentive for click-fraud.

CPM ads does not fare much better than CPC ads. Hidden ads that no one click on, automatically generated page views, and sneaky redirects are just some problems that plague the system.

Pay-per-action ads - it seems - is the perfect solutions. Publishers get paid only when someone clicks on the ads and take some action (like buying a product) from the advertisers’ site. It will be much, much harder for publishers to abuse the system, as whatever is paid to them is less than what the advertiser makes from the sale. From advertisers’ view, it will be much easier to calculate the ROI, as they pay only for sales made.


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