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Microsoft and Google Pay Per Click

27/06/08 7:11 AM

In recent news Microsoft has just launched a new program in which they are trying to undermine Google’s pay per click advertising. In the UK the Google executives have spoken to the media about Microsoft’s decision. Microsoft is still trying to get the online giant Yahoo, which has been struggling against Google.

Part of Microsoft’s new aim is to get a cost per action advertising going. This is a plan in which the advertiser is going to pay for a specific action like a sale rather than just a click to the website. In other words the cost per action is supposed to generate more profit and less cost to the advertiser over the pay per click option from Google.

The best part of the pay per action option is that the advertiser is not paying for a shopper to click on the site and look through the consumer goods. Instead the advertiser is only going to pay if the advertisement resulted in a sale. Microsoft is also promising a cash back rebate that is set by the merchant to go to the consumer.

Google was trying to get into the cost per action option as well as the pay per click, but they don’t seem to be as ready as Microsoft yet.

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