Google is experimenting with a new proposition for advertisers: if you don’t get results, you don’t pay.
The company said on Tuesday that it would expand a test of a system that allows advertisers to pay only when an ad spurs a consumer to take an action, be it purchasing a product, subscribing to a newsletter or signing up to receive a quote from a mortgage broker or car dealer.
The vast majority of advertisers now pay Google when a user clicks on ads that are displayed alongside its search results or on other Web sites, while some are billed based on how many people view the ads.
The company said on Tuesday that it would expand a test of a system that allows advertisers to pay only when an ad spurs a consumer to take an action, be it purchasing a product, subscribing to a newsletter or signing up to receive a quote from a mortgage broker or car dealer.
The vast majority of advertisers now pay Google when a user clicks on ads that are displayed alongside its search results or on other Web sites, while some are billed based on how many people view the ads.
“We’re optimistic that it will be something that will be very compelling for advertisers,” said Susan Wojcicki, vice president of product management at Google. Ms. Wojcicki said the system would also give participating Web publishers a wider choice of ad types for their sites.
2 comments:
Is there a learning from this for any traditional media here?
is there?
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