Pay Per Action Takes Over Pay Per Click

This September Google officially introduced the new wave of SEM (Search Engine Marketing). There has been much said about this new feature known to Adwords users as the "conversion optimizer feature". Previously Google have been using a straight forward Pay Per Click (PPC) system, which they themselves created. PPC ads, also known as sponsored links, are found on a search engine's search results. For instance, when you go to google and type in San Diego Website Design, numerous sections of search results are on the screen. At the very top of the screen there is a map with business listing. This list is a service for those businesses that have accounts with Google. Below that is a list beginning with Appeal Media's Listing (shameless plug!). These are known as organic listings. Advertisers can not pay to be listed organically. It is a very complex system which is based on parameters such as relevancy and popularity. On the right hand side of the screen are the sponsored links. Sponsored links (PPC) are not listings, but clever advertisements that are being paid for.
The Pay Per system works on keywords. Keywords are the words people actually type in the search engine to look, such as San Diego Website Design. This would technically be a keyword phrase; San Diego, Website, and Design. The advertisers will competitively bid on keywords with their competition. This type of advertising takes constant maintenance as the cost of keyword rise and rise. The magnanimous techies at Google saw the problems popping up, such as inflation, with the once golden PPC system and decided to evolve. Other problems noted are ad clutter and fraud. PPC is currently plagued with issues as it comes down from its peak. This situation had to be remedied for the sake of the discontented advertisers and anxious publishers. The solution is PPA.
PPA ( Pay Per Acquisition or Pay Per Action) is a new type of advertising online that is conversion specific and garnering global support from advertisers. As usual, Google has broken ground on this and is offering it to their current Adwords Advertisers as an option for their existing account. E-bay is also doing something similiar with their advertising. There are a lot of fancy words to explain something so simple. Broken down into layman's terms it is not so daunting.
Showdown : PPA vs. PPC
* Pay Per Click advertisers pay per impression or click. (Not necessarily results driven)
* Pay Per Action advertisers pay only when an "actionable task" happens.
o An actionable task is something you want to get from your cutomers to benefit and/or grow your business. Google Adwords lists action options as purchase/sale, lead (new contact), sign-up (subscription), views of keypage, and 'other' (be creative).
* PPC rates based on keywords rate. Keyword rates have risen with the surge of online business competetion. And then you still have to rely on yourself for conversions!
* PPA rates are based on actions that directly benefit your business. Prices are not unreasonable for small to mid-size businesses.
* PPC cost risk is on the advertiser.
* PPA cost risk is on the ad publisher.
It would be highly beneficial as an advertiser to jump on the bandwagon with this latest and greatest care of Google. It is a rare thing for a publisher to put their money where their mouth is and garner the brunt of a possible loss. Iit is unlikely that a loss would happen for Google or Ebay with their quantum growth patterns. This is still a one of a kind opportunity for businesses to get the most bang for your buck and not to stress as much about return on investment.