Marissa Mayer, Google’s vice president of search product and user experience, mentioned in her keynote presentation at SES in San Jose, that she deemed cost-per-action (CPA) “the Holy Grail,” according to CNET News.com.
According to Marissa, Google is making moves towards cost-per-action as a more ideal auction-based pricing model, but she also pointed out that it’s a long way away.
Interesting stuff – sort of the path taken by affiliate marketing around the turn of the century. CPC programs were huge, then click fraud like crazy, then near extinction of the model.
Google largely popularized the return of the model with safeguards, but the cheaters, rats, and scumbags constantly engage them in a game of Spy vs. Spy.
I guess the Google Pay-per-action best test is working out well.
I’d better run off now and test some more creative with the referral links in AdSense.