Google Discovers Cost per Action

This is the 3rd (or perhaps the 4th) time that Google has announced a foray into the CPA business.  Is this a good thing – for the marketer? The firms already in CPA, CPL or CPQ? What about the consumer?

I believe all these constituencies should welcome Google.  First, it is inevitable that marketers will see the ROI benefits – and shift budget – when they can decide to pay for sales, leads or other action.  Google’s presence will accelerate the acceptance of this thinking.  It will also set the pricing standards.  And marketers will gain as click fraud withers.

For Precision Prospects and others that have been in CPL/CPQ, one of the biggest challenges has been finding the people in client companies and agencies who truly embrace the ROI-based thinking.  When Google promotes an idea, everyone needs to pay attention – that will help those of us in niche areas expand our markets.

And for the consumer, Google and others will bring quid pro quo to life.  The more consumers understand that they can trade their valuable information for marketers’ information, the better potential relationships become.  Opting in can become a standard. 

Bring it on, Google…

Resources:
Google's Smart Moves 
MediaPost
by Dave Morgan, Thursday, Mar 22, 2007