Google Switching from Cost Per Click to Cost Per Action Ads?

In an attempt to protect its advertising partners from click fraud, Google is testing a new type of online ad that would only charge the advertiser when a user performs a certain action. This would assure advertisers that they are getting a return on their investment, while weeding out false clicks.

Google has been testing out the new system with a small group of advertisers, which has been expanded as the test continues. The new program is apparently not intended to replace the pay-per-click system; rather, it would be offered as a separate option.

Its likely that the new ad type would sell at a higher price than the traditional ads, as it would take more impressions to create a chargeable click. However, it also poses the risk that as more companies transition to the new system, ad revenues at Google could fall as a result.

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