Pay for Results Advertising Coming from Google

The New York Times wrote about Google experimenting with an advertising approach where advertisers would only pay for results. Think of it as Pay for Pay. The advertiser states what the action should be - purchase a product, download something, sign up for an email list - and what it would pay. Then sites decide whether they will run the ads.

According to the story, Google's VP of product management, Susan Wojcicki, said "We’re optimistic that it will be something that will be very compelling for advertisers." No kidding - and terrifying for sites (read that more generally as publishers), advertising agencies, consultants, and many others who have made money without having to prove their ultimate usefulness to the strategic interests of the advertiser. Not all will quake; direct marketers have been judged on results for years. But this could have an enormous leveling effect on an entire industry that too often gets away with a dance and a smile.