Google Testing CPA Network - Yahoo?

Ok, so Google is testing a cost per action network.  Should you get excited?  Maybe, but personally I'm as excited as I used to be with Linkshare, BeFree, Commission Junction, and etc which means not much.  Let's take a look at the article published by the Boston Globe and further analyzed by MarketingVox. 

According to the Boston Globe article, Google's CPA test is running on their AdSense program (ie - CONTENT network) and won't compete with other AdSense ads in the online auctions Google uses to sell ads.  MarketingVox further expands on this that they will only show these CPA ads in a new network called Content Referral Network.  Just a refresher for you folks - content network include sites that opt-in to be in Google's network (like the ads on my site) and are not people searching on Google.com.  So this Content Referral Network must be a sub-segment of content.

Should you care?  It depends what action you are selling.  If it is low involvement like music, downloads, and maybe even email lead generation it might work for you.  I'd also assume you'd have to put a conversion tracking code in the action you want to pay on and that always gets me worried when I have too many codes in my eCommerce (if you have multiple tracking codes and measure latency, someone is going to get credited for an action that didn't belong to them).

Google is really all about search related business and that's what makes it great.  When people search for information, they are actively asking to be sold something.  Anything outside that core competency is just a flirtation with another ad format.  Since this CPA test is outside of their core search business, it amounts to much about nothing.  Yahoo.

PardonMyFrench,

Eric

P.S.  There is still time to vote on whether I should keep my paper subscription to the WSJ.  Scroll down and vote, please.

Comments

[Shig]

I think that it's a great move on Google's part. A lot of local businesses, like one of my clients, care only about acquisitions but don't have the time nor knowledge to manage and monitor a paid search campaign.

[Eric Frenchman]

Shig,

The key part is that your client gets enough action to make it worthwhile. Typically, these sites don't generate enough and since Google won't run them on Google.com where's the volume coming from?

PardonMyFrench,

Eric

[Shig]

Through keyword research, I'm estimating about 5000 relevant queries per month just on Google. Right now, we're converting about 0.3% of that traffic. If we can increase that even by 0.1%, that's a significant jump in my client's business.