Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.
+1 212 318 2000
Europe, Middle East, & Africa
+44 20 7330 7500
+65 6212 1000
When examining ways to market their businesses online, many companies look no further than the ubiquitous click. For budget-conscious businesses that require a dollar spent to equal a customer gained, a cost-per-action ad model is worth evaluating.
Cost-per-action is exactly what it sounds like—a marketer only pays a publisher or ad network provider when a customer takes a specific action (beyond just a click). Earlier this year, Google, which has become synonymous with pay-per-click advertising, began a new cost-per-action trial that requires some publishers to dedicate a portion of their total inventory to serve as Google cost-per-action ads.
Another popular cost-per-action model is pay-per-call, where the advertiser doesn’t pay unless they receive a customer call, thereby getting businesses much closer to a buying customer than a click does.
Why do these approaches work for marketers? They:
• Get advertisers closer to qualified customers
• Result in higher customer conversion and ROI
• Help eliminate click fraud, a common drain on small businesses’ ad budgets
• Are ideal for service-based businesses that need to generate sales; not just people perusing their Web site
Cost-per-action models ensure that you only pay for tangible leads, like a phone call or a completed online application. As an actionable ad model, cost-per-action marketing helps give businesses greater control and return on their ad dollars.
Chief Marketing Officer
San Francisco, Calif.
Want to improve the way you run your business? Entrepreneurs, academics, and consultants from diverse industries offer practical advice on a variety of topics each business day.
To submit a tip for consideration, first check our archive of previous tips to make sure you're not repeating a tip someone has already contributed. Then send the tip to Small Business channel contributor Michelle Dammon Loyalka. Because of the volume of material she receives, she may not respond to each individual.