Google PPA, Google CPA - Will you make more money?

If you are an adwords user, then this will really interest you. If you're not, then now it's a valuable opportunity to get yourself up with the play.

What is Google PPA?

Google Pay Per Aquisition (PPA) is a new model that, instead of paying per click, or per impression on content network ads, adwords users only pay if the user completes an action that has been pre-defined (such as purchasing a product, registering for a newsletter, clicking on an affiliate link on the landing page and so forth).

Google has just released this PPA model to advertisers who use conversion tracking and have over 500 conversions from cost per click or cost per impression based campaigns in the last month.

Even if you do not fit into the above who are on the first wave of this release, this will likely be released soon to all adwords users, so read on.

Some adwords users feel that they are getting poorer and poorer returns on their investments from google content match ads. And this new model that google has just released, MAY (and I feel has a very good chance) make advertising on the google content network a lot more profitable market. BOTH from the advertisers perspective AND from a publisher's perspective (if you publish google adsense ads on your site).

What you can now do is set up PPA campaigns and then publishers (adsense earners) can choose to place the PPA ads on their sites. You have the ability to choose which site you don't want to appear on and which sites you do. And adsense earners can choose whether or not they want particular CPA (cost per aquisition) ads on their site.

To me this is extremely exciting, looking at it from an affiliates perspective, it means that you can basically run your own Google CPA affiliate program, while not actually owning the product you are promoting.

How?

Well, suppose that 5% of people who subscribe to your free 'save marriage' newsletter, purchase 'save my marriage today' via your affiliate link. Lets say on average you earn $30 per sale.

Well that means that you earn $1.50 for every subscriber to your newsletter (and perhaps more over the course of a year or more).

So, now you can place a PPA offer where you might be willing to pay adsense publishers 75 cents (say) for every subscriber they send your way. Or you may choose to be conservative and offer 30 cents per valid subscriber.

Adsense publishers can then choose from the various CPA offers and they will be motivated NOT to get clicks like the pay per click model, BUT by making actions. Which means that they will have to make their sites more relevant, place ads in places that are more likely to lead to clicks that are not by accident. And you won't have to pay for bogus clicks.

I think this is really exciting, and adsense publishers should be looking forward to this too because it promises to give them even more opportunities to earn income from all the CPA offers they'll have the opportunities of promoting, while adwords bidders will be much less likely to get burnt by bogus clicks and poor converting content network bids.

I'm also guessing that google will probably allow adsense publishers to encourage people to click on the cpa ads, which is good for you as a advertiser who isn't paying per click, and is good for them as they can send more people to the advertisers site and potentially make more money from adsense.

Win - Win.

Ok, so that's my take, and it's early days.

What's your view?

Mark

p.s. If you find this post helpful, please tell others about it or link to it from your blog. Perhaps even write your own blog post and quote mine.