Is Cost Per Action In Our Future?

You might have heard that Google, Yahoo and MSN are thinking about launching a new Pay-Per-Click model called "Cost Per Action".  This might be the waive of the future and we believe certainly make a lot of sense.  In a Cost Per Action model, hotels would only pay the Search Engines when a booking or sale is made and NOT on a "click through" as is now the case.

Search Engines believe this is a good alternative in dealing with the rising amount of click fraud that seriously exposes them to liabilities and tremendous financial downside.  Also, the Cost Per Action model may actually increase Search Engine revenues as each "action" will cost the advertiser (hotels) more than the traditional cost-per-click.

What do you think? Post your comments here.

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