Thursday, June 22, 2006

Google launches affiliate marketing network

Google is testing a new online advertising network that will let merchants pay a fee only when an internet user performs a specific action, such as buying a product or registering for a service.

If successful, the so-called “cost per action”, or CPA, network would extend the search engine company’s range of advertising activities and reduce its reliance on the “cost per click” model that has been at the heart of its early success.

This offering, popularly known as affiliate networks, is the first major step in Google's switch away from search based advertising monetised via cost per clicks (ooh, that sounds techie!). It'll work for them as it already does for other major affiliate network poroviders such as Amazon and DoubleClick.

Ebay launched a form of CPA network of its own last week, offering to pay affiliate websites that carry its auction listings a share of the sales commission if the adverts result in a sale.

The Google machine is switching on light bulb after light bulb - expect banner ads up next!

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