Google AdSense Beta to Apply Direct Sales Model to Advertising

In Dell Computer’s revolutionary direct sales model, which altered the evolution of American business, component parts for building customer orders were purchased at or near the time of the order, reducing to near-zero inventory on hand and accelerating the company’s rise to profitability. Google is already pretty profitable in its own business, but today it confirmed rumors that it will experiment with an approach to advertising sales that Michael Dell might appreciate: a cost-per-action model where the advertiser pays when the sale is made.

While similar systems have been tried by Internet advertisers before, they’ve been on a far smaller scale. Google’s upcoming AdSense beta will give selected participants in the US the option of determining the value of a user’s action - such as paying for a download or signing up for a newsletter - triggered by an ad supplied through the Google AdSense network.

Rather than paying for the click (which may not result in a sale) or for the impression (which the customer might not even see), a beta advertiser may choose to pay for the “action,” which is an advertiser-defined point in which the customer’s sale is declared “converted.” (FULL DISCLOSURE: BetaNews is a Google AdSense partner.)


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