Pay per click (PPC) is a type of advertising that Google uses where advertisers are charged every time a person clicks on the link, and can be a costly system for advertisers. PPC advertising just means that people are coming to your site; it doesn’t mean that they are interested in what you are selling or will buy something.
Many people think the PPC advertising is a waste of money, because people will take a look at your site, but have no interest in buying anything. Those who are against PPC think that there are better ways to advertise. Google has listened to these concerns and has come up with a new way to advertise: “pay per actionâ€. Pay per action means that the people clicking on these ads actually do something (besides clicking on the ad), and the advertiser determines what the action is, for example, buy something, subscribe to a newsletter or ask for more information.
Google’s pay per action advertising is more expensive than pay per click advertising because it will actually bring a positive result for the company 100% of the time. Unlike with PPC ads, there can’t be any fraud with pay per action ads. It doesn’t matter if a thousand people click on your add (or if one person clicks on it a thousand times), you only get charged with a commission on a successful transaction.
The only problem that advertisers are worried about with this replacement for pay per click advertising is that Google is saying that prices will be determined by what the advertisers want as their results. Advertisers are wondering if their monthly bills are going to far exceed the revenue this brings in.
So, is PPC advertising dead and is pay per action advertising the future, or do you think that there will be a lot of problems with it in the future? It sounds like a great idea, because you are paying for results instead of paying for people to look, but time will tell.
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