Monday, March 26, 2007

Google PPA – The Giant Killer!

Google recently announced their AdWords Beta test for PPA (Pay Per Action) This new approach is a reaction to the ongoing problem with click fraud as well as a natural move toward pay for performance. As ad rates increase advertisers are increasingly looking for a way to guarantee results for the ad spend.

The details of the Beta test can be found on the Google AdWords blog. In my view PPA is a fantastic new opportunity for sellers to advertise their products. The Long Tail will benefit from this approach by allowing sellers to list more items without having to worry about marketing costs getting out of control. This approach may have a substantial impact on eBay because they derive the greatest portion of their revenue from listing fees. This is going to be interesting.