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Thursday, June 22, 2006

Cost Per Action and Analytics

Wired has the scoop. Google's creative team has come up with a very smart new method of getting paid: Cost per "action" (CPA). From the article:

The new cost-per-action, or CPA, network will pay only if net users perform a specific action such as making a purchase or generating a sales lead

This is a decent attack on click fraud. Presumably Google doesn't get paid unless a specific goal or conversion happens in this scenario. Or maybe they just get paid more when an "action" does happen? The pricing model will be very interesting for this new approach. Is there a concept of an auction price? Are some goals weighted higher than others?

And how will one quantify the various "actions"? Well, I guess you need some sort of analytics to do that. Will it matter which analytics package you choose?

This one will be very fun to watch unfold.

Filed in: analytics, google

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1 comment:

  1. Well, obvious and reasonable approach generally preventing click fraud. The crux, however, and like already pointed out, is to correctly track and quantify all those transactions.



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