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Google AdWords Forum

Ever Think?

10+ Year Member

Msg#: 3012839 posted 9:31 am on Jul 18, 2006 (gmt 0)

Ever think that Google is doing all this just to shake people up and soften them for the "big kill".

Google just released Google Checkout. No one I talked to is using it, there's really no reason to.

Google offered a small incentive to use it with Adwords and have it reduce fees a small bit. Still no interest from me and others.

Perhaps Google expected this, perhaps they were surprised.

Now, we know Google is moving to Cost per Action. But to truely have real CPA then Google needs all sorts of info about your business. Most of all they need to know for real when a sale is made.

The only feasible way to do this is Google checkout or some sort of payment processor tie-in. Otherwise it would be easy to obscure sales to get lower rates.

But who in their right mind is going to give Google that kind of access?

Well, if you're making $500,000 a year with .10 bids and Google starts charging you $10 a click...you'd sign up for CPA if Google promised you the ability to get back in the game.

Perhaps Google is just blackmailing people by holding their campaigns "hostage" and CPA/Google Checkout is the ransom.



10+ Year Member

Msg#: 3012839 posted 10:21 am on Jul 18, 2006 (gmt 0)

I think CPA will just be the third way that people bid on the Google network. CPC and CPM (with site targeting) are the ways people bid now. CPC and CPM bids compete for placement. I suspect CPA will compete CPC and CPM placement as well. If people game the system by underreporting sales, they will in effect be "bidding" a lower amount. Google will run ads by position in accordance with maximizing Google revenues, as they do now. CPA reporting will be what might be called "a self correcting system"


5+ Year Member

Msg#: 3012839 posted 11:27 am on Jul 18, 2006 (gmt 0)

I use adwords but customers can not buy directly from the site, there is no checkout. I rely on customers contacting me by phone after visiting the site as the service I sell is not suited to online purchasing.
How will CPA work with that?


Msg#: 3012839 posted 1:19 pm on Jul 18, 2006 (gmt 0)

How will CPA work with that?

It won't. But it won't have to, because CPA will likely be just another option (as site-targeted CPM ads are now).


5+ Year Member

Msg#: 3012839 posted 5:53 pm on Jul 19, 2006 (gmt 0)

eBay bought Paypal after they failed to compete with them...

Google bought AOL (well in part) to make sure they maintained that golden traffic....

Things that make you go mmmmmmm

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