Rather than your bid simply being a MAX CPC, your bid becomes a combination of CPC and how much you pay for a particular kind of conversion.
This way Google can start paying out AdSense according to the conversions they create rather than a bunch of teenagers who get into "click rings".
Also, with this kind of conversion information Google can start placing ads way more intelligently.
Some might argue .. but not everything converts right away.
I disagree with that. I think there are a lot of things which dictate a conversion beyond someone typing in a credit card #. There are the number of clicks, whether they downloaded a demo, joined a newsletter, went into live chat, etc.
BFREE / CJ is already doing it, why can't google? At least we should have the option. For the people who simply can not set themselves up that way, they can pay the old way with a flat bid.
Also, with this kind of conversion information Google can start placing ads way more intelligently
They'd do a lot more than that with the data!
For this system to work, G would have to not only know your conversion rate, but also your sale prices and profit margin. Unless you just mean a higher price if you convert, in which case it seems that companies with few conversions with expensive products would pay less than companies with many conversions but less expensive products.
For those who don't want Google to have the info, then they can just do the flat bid as I mentioned and live in the stone age.
BTW, Google actually has everything in place already, they just need to get rid of the silly graphic requirement.
However, instead of saying how much money you make with a conversion, though, you simply enter in how valuable that conversion was to you. Don't need to mess around with profit margins / revenue / etc.
AdWords is advertising.
Very different types of visibility.
If G made this a requirement, I know companies who would stop spending money with G.
I agree with you though, it shouldn't be a requirement at first. ;)
I don't consider AdWords to be affiliate like.
AdSense, I'd agree is similiar, but only to a degree.
The problem still remains that for AdSense people to be paid on a conversion basis, I still have to give G my conversion information. At that point, AdSense is no longer advertising - it is an affiliate program.
There are companies that run their affiliate programs inhouse as they don't want a 3rd party knowing their information.
I work with several companies that if they had to give that information to a 3rd party, would discontinue content advertising with AdSense.
I can see the benefit you're talking about as click fraud won't matter - it will be based on the conversion data - but if I want that type of traffic, I'll sign up with CJ.
I feel sad everytime I edit a campaign and turn it off, but what choice do I have?
I'd like to have the choice to pay google like I pay eBay .. sort of Final Value Fees. Part of my bid price can be a flat rate, and the rest I pay is on a conversion basis.
Rather than your bid simply being a MAX CPC, your bid becomes a combination of CPC and how much you pay for a particular kind of conversion...
Clearly some pros and cons with this idea, based on the discussion in this thread, but I'll certainly pass it on to the right folks.
AWA
If you were charging on a Conversion basis then reputable websites wouldn't have to worry about their competitors taking them out like this.
