All About Pay Per Action - Part 5
The Pros and Cons
As with any new software and ideas there are some pros and cons to the whole pay per action campaign. On the pro side the advertisers are going to have to pay just a set amount rather than how much per click. This means that advertisers are getting a fair price for the pay per action because they either pay the flat fee or a percentage of the sales. This way the risk is lowered and they know what the actual ad is going to cost them over the original pay per click where it could vary. This helps in budgeting for the new year and offers up enthusiasm for the program to succeed.
On the other hand there have been some issues already with the pay per action. Snap.com, the search and online services company that began in 2004 with pay per action ads in 2004 didn’t have success and dropped the program in July 2007. It seems for Snap.com the difficulty was in the whole process. The process entailed tracking the action when it took place. In other words it was hard to discern what, was the action and what was just interest. It seems that consumers were visiting the site several times before buying a product or filling out the form. So it made the actually tracking of the action rather difficult.
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