I recently read a post on my teammate, Kristen Mastrola's Blog. This post describes an article on the Adword internet site. The article discusses a pricing model for internet sites called pay-per-action. Pay-per-action allows the advertiser to pay based on measures and factors established by the advertiser, and the advertiser only pays if the criteria he/she establishes are met.
I found this post to be very interesting especially the pricing method that was discussed. The challenge for all advertisers is always how do you evaluate if what you are advertising is effective and then what is the most appropriate mechanism for paying for such advertising. The internet is a unique medium of advertising. It is very technological based and therefore offers very unique ways for targeting customers and also for evaluting the effectiveness of your advertising. Pricing an ad that is tied directly to how effective that ad is especailly if based on measures developed by the advertiser is a very creative way of pricing and should be welcome by both advertisers and the for profit internet sites.
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