Google Bites Into The Affiliate Market. Is PPA More Than They Can Chew?
Google has decided to expand its Adwords service to more than simple PPC (pay per click) advertising. They have introduced a service that resembles very much the traditional affiliate programs. The Pay Per Action program which has just entered beta testing, pays the publisher only when a certain key condition or action is made, like subscribing to a newsletter or generating a sale.
With Google’s enormous resources it seems that this will be the next big thing, but personally I somehow doubt it. Big Daddy is entering an unknown territory and they might lose a lot of the trust they are currently enjoying. The biggest possible setback is the fact that the sellers can unintentionally go over their budget, due to the snowball effect. It often takes some time between the moment that a visitor follows a link until he pursues the action tha pays. Given the huge numbers that Google deals with, some accidents will most likely happen where the publisher won’t be able to receive his commission in its entirety. There is also the issue of multiple leads which result in a single action. What if a visitor comes to the same site several times via PPA, through different publishers and then finally acts. Who will obtain the commission?
This is definitely a story that is worth watching. If you want to join the beta test, you can find more details here. You might also want to check their FAQ
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