Google Confirms Testing New Ad-Pricing Model - InformationWeek
IoT
IoT
News
News
6/22/2006
06:38 PM
50%
50%
RELATED EVENTS
Big Data at QVC: Where Entertainment Meets Retail
Aug 24, 2017
In this live radio show you will hear about what one modern entertainment and retail company, QVC, ...Read More>>

Google Confirms Testing New Ad-Pricing Model

Advertisers will pony up when consumers buy a product, qualify as a sales lead, or sign onto a mailing list.

Google Inc. on Thursday confirmed that it's testing a new ad-pricing model that would have advertisers pay a fee when online consumers buy a product, qualify as a sales lead or sign onto a mailing list.

Testing of the new model, often referred to as "cost-per-action," was first reported in The Wall Street Journal. The new pricing is seen as a way to deliver a better return on investment to advertisers, and as a means to combat click fraud, the newspaper said.

Click fraud refers to the clicking of an ad link to either drive up the cost to advertisers or the revenue to publishers. Competitors sometimes perpetrate the former, while the latter by unscrupulous Web sites.

"We are currently testing a cost-per-action pricing model to give advertisers more flexibility and provide publishers another way to earn revenue through AdSense," Google said in an emailed statement. "We're pleased with how the test is progressing and will continue to gather feedback from advertisers and publishers."

The Mountain View, Calif., search engine refused to provide further details, but the Journal reported that the new ad pricing would be in addition to the services Google currently provides.

Google sells ads based on bids for keywords used by people during Web searches. The search engine collects a fee every time someone clicks on an ad listed in search results. So-called contextual search advertising provides a major portion of Google's revenues.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll