Google CPA Model and the Future of Search
Google is now tapping a whole new revenue stream by implementing a Cost Per Action (CPA) model for it's Product Listing Ads. In the short run, the implications could be very interesting. Apart from including these into larger, long-established PPC accounts, a large scale "CPA risk-free" model, will most definitely allow smaller advertisers, and risk adverse marketers to test the waters in the world of Search. This could generate considerable growth for Google, and we should never underestimate this segment, Google certainly isn't.
An oversimplified CPA model will only scratch the surface of what Search is capable of. Hiding in the ivory tower of a risk-free CPA deal would hold back the dynamism that makes Search the thriving industry it is, and keeps us coming to the office every morning looking forward to adding an extra twist to this and that campaign. After all, search is about more than just being a click based sales channel, there are other factors such as assets, seasonality, assists, funnels, usability, branding, and changes in search behaviour to tie into the mix. This is where the innovation comes into search, along with profitability.
Limiting risk through a CPA model might help bring new people onboard, don't get me wrong. This might become part of Search, but not it's future. Easy solutions are ok for those who only dare to see easy problems. We like the insights that gives us the jaw dropping moment in front of our clients, and an easy, risk-free CPA model does not really work, not for us.
- By Jaime Jimenez