Google is currently testing a new type of online ad that only charges the advertiser when a user performs a certain action.  These ads are currently being offered to a small number of advertisers to test out.

The new system is not intended to replace the current Cost-Per-Click system, but rather be offered as an additional option to advertisers who may be worried about click fraud.

It is speculated that CPA ads would cost more than traditional ads because they require a specific action on the part of the user.  While the new system could reduce click fraud, it could also potentially lower revenue for Google.

As the testing continues, CPA ads are being offered to more individuals.  There is no word when the new ads will be publically available to all.

This entry was posted on Thursday, June 22nd, 2006 at 3:33 pm and is filed under Google. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.