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Cost Per Action

Search Engine Marketing campaigns need not be only priced globally. There is no fixed price for an Internet marketing campaign regardless of the results it yields. Instead, online advertising campaigns can be more goal-oriented, as the Cost Per Action meter helps measure. This performance based model of online advertising has the advertiser pay for the ad based only on direct actions which it brings about. What are the exact actions and what the fee for them is are factors determined in the agreement between the Website publisher and the search engine.

The target action is determined by the advertiser and may include any of the following: a purchase of a product sold on the Website, the filling out of a registration form of sorts, signing up for an email newsletter, printing out a coupon, submitting a query and so on. These are business goals that either generate income or leads for Search Engine Marketing purposes.

Compared with the alternative SEM campaign based on a Cost Per Thousand basis, the effective Cost Per Action meter can tell the advertiser how successful this form of Search Engine Marketing campaign actually is, by giving out a ratio of the investment in the SEM relative to the actual business value that the ad yields. Cost Per Action based campaigns are considered highly effective and beneficial to the advertisers. Google AdSense has added this feature to its advertising pricing models as has eBay and other search engine Web services.

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