I have always had this theory looking at the way google adwords system (a ad network system surronding its search engine) worked. I somehow always felt that the pay per click system had to graduate to the pay per conversion system. Though they recently launched th click to call system which itself was an interesting innovation its the newly launched pay per action system is what seems the best so far from the google adwords stable. Though available in Beta and only in the US pay per action seems to be an online advertisers dream come true in terms of accountibility and ROI of advertising.

As defined by google "Pay-per-action advertising is a new pricing model that allows you to pay only for completed actions that you define, such as a lead, a sale, or a pageview, after a user has clicked on your ad on a publisher’s site. You’ll define an action, set up conversion tracking, and create ads that publishers in the Google content network can then choose to place in new ad units on their site."

Lets hope the pay per action comes to india soon as it would really help in increasing penetration of online advertising in the Indian market.

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