The cost-per-click model for Google ads could soon be complimented by a cost-per-action one, if the testing for this click fraud busting technology proves successful. The concept is simple enough: advertisers would only get charged when a particular action is performed rather than simply clicking on the thing. Already a growing band of volunteers advertisers have been putting the system through its paces, with a positive reaction if my sources are to be believed.
However, if it is so good at combating click fraud, why is Google not going to replace the current system outright? My sources tell me that it is seen as an alternative not a replacement, which is just truly bizarre. After all, it is a win-win situation for all concerned surely. Google benefits from not having to compensate companies defrauded by click fraud swindles, and from the higher charges it will likely sell these ads for. Advertisers benefit by being charged on a more realistic bums on seats basis. Have you spotted the fly in the ointment yet? Yep, if the system really does work then, despite the higher charges, Google’s revenue will fall over time as fraud is eliminated. Therefore, which is it Google, do you want to get rid of this kind of fraud or are measures like this just smoke and mirrors?
In the meantime, the AdWords program has been beefed up a little by the expanded integration of Google Analytics. The introduction of an AdWords Analysis and AdWords Keywords Positions report will help all advertisers looking to optimize revenue by automatically tracking AdWords campaigns. No manual tagging of keywords required, all the data is populated directly. The Analysis report looks like being the easiest way of getting a handle on individual campaign R.O.I, while the Keywords Positions report will just as usefully display the correlation between paid search results and keywords purchased (determining the real value by position purchased.)