Google
is launching a new advertising system that generates cash when browsers buy an
item rather than just clicking on an advertisement.
The system is an extension to its current pay-per-click
Adsense
programme, which allows website publishers to display adverts from Google and
receive revenue when visitors click on the ads.
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The new offering is based on a 'cost-per-action' model. Website owners will
only receive money when visitors complete a specific action determined by the
advertiser, such as purchasing an item or signing up for a service.
A cost-per-action model is less vulnerable to such fraud, since users need to
perform a specific task.
The trial is being offered to selected website owners currently participating
in the Adsense programme.
In an email sent to David Jackson of financial analysts
Seeking
Alpha, Google explained that the ads are "very different in that [website
owners] will be able to choose amongst a selection and have more flexibility in
promoting them".
The email went on to explain that the new system would run separately to
Google's current offerings.
"These ads will not compete with contextually targeted ads. Instead, they
will show across a separate Content Referral network," said Google.
The move puts Google in direct competition with established player
ValueClick
which owns affiliate network
Commission
Junction.
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