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Google Tests New Adword System
24-03-2007

Google recently announced that they are testing new system for their Adwords service. The new system will allow advertisers to pay only when an ad spurs a consumer to take an action, be it purchasing a product, subscribing to a newsletter or sending any kind of request to the company customer support.

The majority of advertisers now pay Google when a user clicks on ads that are displayed alongside its search results or on other Web sites, while some are billed based on how many people view the ads. Under the cost per action system, advertisers will choose what they are willing to pay for a specific action and by this way they will reduce the expenditures for online advertising. Moreover, it will decrease the risk for generating fraud clicks on certain ad.

Until now Google has tested the system with 75 advertisers and 75 publishers. Last summer the number of testers was 30 advertisers and 30 publishers. 


nytimes.com
 
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