Yeap - and it would rock, because it would destroy the concerns about invalid clicks. Of course, there will be other problems - but will be interesting.
I agree. However, it would not allow little guys to monetise their sites as easily as they would now, even if it is only to cover hosting and domain cost.
Something will evolve to help the little guy - I am certain of it. The beauty of the process is - advertisers will actually be getting demonstratable ROI for money spent rather than the shooting in the dark that you are doing with AdWords now. "Sweet - I just got a $100 order! Too bad it cost $120 in AdWords to get it..."
I dont know if Im being thick here but don't you mean Adwords? it would be the advertisers paying per action.
Actually I doubt if Adsense will ever leave the CPM and PPC model behind. The CPA model will make a good addition to Adsense, but as they stated it will basically be a totally different subset (almost like Referrals) of the Adsense program.
Could be. However certain advertising models will work better for certain sites. There will always be advertisers who have better success with PPC and CPM advertising to suit their needs. Also I think that CPA advertising will be much more expensive when compared to the traditional models, seeing as they will be much harder to have conversions from (from a publishers viewpoint). Publishers will want a larger cut of the profits and higher payouts to justify using CPA advertising. Let's look at a theoretical example: Using CPC and advertiser spends $100. Let's say they pay an average CPC of $0.10 dollars, and assume they get top positions on one site (they advertise on just that site). That means that they get 1000 clicks for their dollars. If 5% convert into a sale they will have 50 sales. Now $0.10 could convert into a $1000 sale or into a $1 sale. The publisher will get paid approx$70 (70% revenue share). With CPA let's take a conversion of 1% (10 people) out of 1000. Now the publisher would want to at least equal or better the earnings he normally expects from 1000 click, so a CPA action should then cost the advertiser around $7 or more per conversion. * Now the above is in theory to illustrate that CPA could get more expensive than CPC. However for some it might be well worth it because they only pay for a guaranteed sale. It just depends on what you are selling.
Obviously, if and when Google does implement a CPA model, the payout for to pubishers for each action will probably based on percentage of sale proceeds the advertiser has made. This is very similar to affiliates.
If Google goes CPA chances are ad revenue will drop dramatically which means a lot of people will ditch Google. With CJ I had over 60,000 impressions and never made a single penny. With AdSense, 60,000 impressions == several hundred bucks. CPA requires that site owners report sales to Google so publishers can be properly credited. Good luck with that. Most people aren't compulsive buyers so if a visitor comes back later, you get nothing. And good luck convincing every merchant that uses AdWords to track visitor IPs so returning visitors can be tracked back to the publisher. That only costs them money. CPA will be the death of Google AdSense and I don't think Google is that dumb. They may offer it as an option but they'd have to be complete fools to drop the CPC model.
I'm sure advertisers would prefer it if they were only charged when a sale/sign-up/etc was made, but Google wouldn't make nearly as much money that way (nor would we publishers), so it's hard to imagine them taking that step. For publishers, it'd be easier just to use affiliate programs instead of Adsense if it came to that--you make a lot more by optimizing your pages around a specific product, and that's not something you could necessarily do with the current Adsense model.
ya u r right I m also think so, it also could be possible that an publisher hav a chioce to go with adsense or affiliate.............and as far as merchant is concern all advertiser surly go with google if it starts work on CPA basis