In an attempt to protect its advertising partners from click fraud, Google is testing a new type of online ad that would only charge the advertiser when a user performs a certain action. This would assure advertisers that they are getting a return on their investment, while weeding out false clicks.
In an apparent attempt to weed out fraud and try an even more results oriented approach, Google has begun limited testing of a CPA system for use as an option in addition to its CPC system. Though the article speculates a drop in revenue, I would imagine a much higher price point for actions of meaning to an advertiser's business model. A lot of questions remain however - just as CPC ads called into question the value of CPM ads and ultimately can even provide a level setting function, so too would this do the same for CPC.
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