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May 31, 2007
PPA you say, don't you mean PPC?
By Curtis Friedl
What is ppa, cpa, cpm, or ppc? Well we are not talking about the latest accounting jargon, and you don't have to worry about a new executive acronym to be used during your next company meeting. These initials refer to some of the most frequently used paid online marketing program options.
CPM = Cost Per (thousand) impressions
PPC = Pay Per Click
CPC = Cost Per Click
PPA = Pay Per Action
CPA = Cost Per Action
All of these have been around for some time. CPM, PPC, and CPC have receive the most press in the last few years, and many people have used the programs like Adwords, Adsense, and Yahoo Search Marketing as a basis for their online marketing efforts. Much of the press surrounds some of the fraud activities that have been debated in the press. Last year Google announced a limited trial of a new addition, a PPA program. Recently they announced that they are expanding the membership of this group.
If you have never heard of PPA(Pay Per Action), or CPA(Cost Per Action) before, and don't know what it is about, don't worry. While there has been some activity in this type of a program through a search engine called http://www.snap.com/about/advertise.phpSnap little else has occurred. That is until Google entered the game. It will likely be only a short time until MSN and Yahoo may do the same. PPA or CPA, are simple ideas, the advertiser only pays when someone clicks the add link, and completes a particular action. These actions can be anything that the advertiser defines, and can be measured, and tracked by a computer such as signing up for a newsletter, or making a purchase, etc.
This program like Google's other ones permit you to adjust your daily spend for the program. Unlike with the Adsense, and Adwords programs you are responsible for activities/conversions that occur up to 30 days after the PPA visit.
Some people have indicated that this will eliminate the issues with click fraud others have suggested that this may instead lead to "Refund Fraud". While this will be more difficult, and time consuming, it also may be more costly for the advertiser, with expenses up front, and at the refund.
If and when this program goes live to the general public one thing is sure that the landscape of advertising and ads on pages will no longer be the same. Google's program currently permits you to run the standard adds we are familiar with, in addition to banners, and maybe most controversial inline text ads. The only way to tell that the link is sponsored will be to place your mouse over the top of the link and review its information, and they should be labeled as "Ads by Google".
With this program still in beta there are sure to be additional changes to keep an eye open for. Only time will tell how beneficial this program will be to the internet using public, or if a new form of abuse will be learned that tarnishes this new program.
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