Google PPA Finally in BETA Testing

Google Pay Per Action is now in Beta testing in the US. The testing comes almost a year from when Google floated the concept. Pay Per Action will only be implemented on Googles content network. The changes will be welcomed by most advertisers as the development has come on the back of increased click fraud and will deliver a better ROI for advertisers.

Quote from the Google blog;

"You'll define an action, set up conversion tracking, and create ads that publishers in the Google content network can then choose to place in new ad units on their site.

"You define a fixed amount that you'd like to pay for a completed action based on the value of that action to your business."

The new system will certainly shake up existing internet sites who try to make money from Adsense, although this won't happen overnight. Once more advertisers switch to a CPA from a CPC, 3rd party sites will struggle facilitate arbitrage. You may also see a reduced number of spam sites - since spam sites will no longer make easy money.

Whilst affiliate networks are not in fear of the big G launching this service, it will certainly give Google a stronger position in the online advertising market. It will also allow smaller companies who struggle to pay the growing network costs to engage in CPA activity with affiliate sites.