Using Pay-per-Action Campaigns
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Written by Atila on September 5, 2008 – 9:17 am
Pay-per-action campaigns enable you to define a particular action and set the amount you are willing to pay once the action is completed. Actions may include, but are not limited to, newsletter sign-ups, purchases, or downloads.
There are a few terms unique to the pay-per-action, or PPA, system that you must be clear on before you begin: actions, conversions, cost-per-action, and text link. An action, as was already mentioned, is the end goal that you are expecting a user to complete on your site.
A conversion is achieved every time your set action is completed. Google provides you with a code you can place on your site to track these conversions. The costper- action is the amount you are willing to pay a Webmaster every time a visitor who is sent to your site completes an action.
Finally, a text link is a new ad format that does not really look like an ad at all. Text links appear as a regular hyperlink within the text of a Web site. Webmasters embed these links among the content on their site, and visitors reading about a certain product or service are presented with an opportunity to click the keyword to learn more.
When you define your actions, remember that Webmasters shop around for the PPA programs that give them the greatest return on their time.
Webmasters base this decision on the product you offer, the number of times it converts, and the amount they are eligible to make on each term. Be sure to set a cost-per-action that accurately represents what a conversion is worth to you and that appeals to the Webmasters.
Currently, not all Google AdWords advertisers are invited to use PPA campaigns. If you want to use this feature, contact Google directly.
A major benefit of PPA campaigns is the motivation a set cost-per-conversion gives to a Webmaster that has chosen to display your ads. Your content network, placement targeted, and PPA campaigns are displayed on Web sites that participate in the Google AdSense program. These Google AdSense publishers are paid out on a CPC, CPM, or PPA basis. Because PPA pays out only when a customer’s click leads to a conversion, Webmasters are highly motivated to ensure that your ad is a prime location on their site. They want people to click and they want those clicks to turn into sales because they do not get paid otherwise.
AdSense publishers can place your ad anywhere, even hiding your advertisement at the bottom of the page where visitors seldom look. More importantly, if your ad appears on Web sites that are not related to your Web site’s content or on Web sites whose traffic is low quality, the clicks that you receive may be very difficult to convert into sales. PPA offers nearly risk-free advertising that costs you money only when you make money. It is a safe option and worthwhile test for anyone with an online marketing campaign.
