Insider Chatter by Donna Bogatin

Is Google doing advertising evil with its impending Cost Per Action (CPA) ad pricing formats? I have asked just such a question in the past, rhetorically. Today, I asked Google directly, in person.

The head of Google AdSense online sales and operations, Kim Malone, spoke this morning on “Adapting Advertising Models to an Evolving Web Experience” at the Future of Online Advertising conference in New York City.

Malone presented ways in which Google’s holy (ad) trinity–CPM, CPC and, soon, CPA–can be used by marketers across the consumer buy cycle spectrum for building brand awareness, developing consideration and driving actions.

Google’s still in beta, but soon to be released, CPA ad product is perfect for driving actions, in Google’s online ad play book.

While Malone presented “real world” Google case studies to demonstrate the power of Google AdSense CPM and CPC products–display, video, text–she offered her own “imaginary” real-world scenario for how Google’s CPA format will work, given that the product has not as yet been officially launched.

Malone showed an image of a text ad mirroring the typical Google “Sponsored Link” format that we all know (and love) from Google.com as representative of what the Google CPA product will look like.

During the Q & A though, I asked Malone about the Google “text link embedded in a publisher’s recommendatory text“ format that it touts for the new CPA program.

My question to Malone:

While you showed a standard AdWords style Google text ad as representative of your CPA ads, you will be promoting an inline text ad format, in particular.

Consumers will not know that the in-editorial link is a paid ad, as opposed to publisher originated content, unless they mouse over and even at that point, many consumers may not realize.

Why is Google making such a radical departure from Google’s stated commitment to clearly identify advertisers upfront?

Malone’s reply was apparently disingenuous. The head of Google AdSense suggested of Google CPA: “In my views of mock-ups, all is clear.”

Contrary to Malone’s assertion, however, the Google CPA “text link format for pay-per-action ads“ are described by Google exactly as I described them to Malone:

Text links are hyperlinked brief text descriptions that take on the characteristics of a publisher’s page. Publishers can place them in line with other text to better blend the ad and promote your product.

For example, you might see the following text link embedded in a publisher’s recommendatory text: “Widgets are fun! I encourage all my friends to Buy a high quality widget today.” (Mousing over the link (in italic) will display “Ads by Google” to identify these as pay-per-action ads).

Malone also skirted other attendees’ questions about 1) how Google is implementing CPA products in ways that directly contradict Google’s oft proclaimed “no encouraging of clicks” stance and 2) the product return “problem“ that will inevitably surface when advertisers begin paying for hard sales, rather than soft leads.

Do no evil Google? Not exactly.

ALSO: Google PPA Advertorial: The Next PayPerPost?

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