Google sets new CPA advertising model for U.S. customers

As I've said before, Google Inc.'s (NASDAQ: GOOG) goal of world domination centers around the company's capability to be the center of advertising in as many channels as possible where it can take a small cut from connecting global buyers and sellers of all sizes and wallets. With that said, Google's moves in recent years that sprout from its roots as a web-only advertising conduit to a radio and even TV advertising conduit will only grow to ensure Google stays atop the changing media landscape of meaningful advertising as the 30-second TV spot dies a slow death.

Google, on that note, has launched a CPA advertising model for U.S. advertising customers. In this model, there is an associate cost for the advertised based on every action or acquisition (transaction) between the seller and buyer. The "buyer" does not have to buy anything at all in many cases, but just perform the needed action required by the seller (such as an e-newsletter signup).

This is quite an addition to Google's pay-per-click advertising model if you ask me, and it firmly plants Google in the age of traditional advertising where advertisers and marketers pay for a successful "interaction" between themselves and a customer or potential customer. In the CPM model (cost per thousand), the advertising cost is based on "impressions" with little or no measurement on customer interest beyond electronic tracking using web bugs and associated engagement tools for advertisers. Google's move into the CPA arena will most likely make advertisers work a little harder to gain that customer, but they'll be rewarded as that customer completes an interaction with the advertiser -- making Google's advertising model even more relevant to the consumer hopefully.