Today, Google launched their Pay-Per-Action service. Although PPA is not new, Google’s PPA version will probably make other lead generation networks (CJ, Clickbank, ShareASale, LinkShare, etc.) very nervous. Basically, with this beta launch, Google has officially entered the affiliate market.

http://services.google.com/payperaction

What does this mean to advertisers? It should decrease your costs and increase conversions. Why pay someone to send a visitor to your website (PPC) and hope they do something (buy a product, fill out a form, complete a poll, etc.), when you can pay them only for a completed action?

I would much rather pay an affiliate to send me a lead that is actually interested in what I offer than to pay that same affiliate for every click over to my website in hopes they’ll convert. This is why PPA works. I can offer a higher cost per action to affiliates, because I know that 1) I’ll only pay for a conversion that I set (form, sale, poll, etc.) and 2) I’ll get more affiliates wanting to promote my products or services because they’ll get paid more.

I’ve signed us up so hopefully we’ll get an invite soon.