http://www.webpronews.com/blogtalk/2007/03/20/is-googles-pay-per-action-a-threat-to-affiliate-networks

In a post by Andy Beal, entitled “Is Google’s Pay-Per-Action a Threat to Affiliate Networks?” Beal raises the notion that the emergence of Google’s new Pay-Per-Action product might come off as a challenge to any of the affiliate marketing networks. As mentioned in previous blog posts, with Pay-Per-Action (PPA), instead of paying per click like in the Cost-Per-Click product that was discussed in class, advertisers will now be able to pay whenever a customer not only clicks, but perhaps fills out a form on the advertiser’s web site, or even buys a product from the company. In general, advertisers are now given the ability to pay whenever the customers engage in some sort of action when visiting the advertiser’s website, as opposed to simply clicking on the advertisement.

In addition to this, Publishers now have the choice displaying Google’s PPA ads. With PPA Publishers are now given more options to choose from as well. For example Publishers may see the ad before it is displayed, and they may choose the number of ads to display. They also have the option of receiving a “text link ad.” With this new “text link ad” Publishers have the power to display ads as one line of text instead of as an ad block.

Affiliate market networks work in a similar fashion. In these marketing networks an affiliate collects payment whenever the customer buys a product or a service from the website that the affiliate links back to. To Beal, Google seems to be clearing itself a space in the affiliate marketing industry. By performing the same functions as these networks, Google’s PPA seems to threaten the existing affiliate marketing networks. However, Beal reports that after discussing this issue with product manager of Google’s advertising products, Rob Kniaz, Kniaz responded that by offering more choices and control, PPA is different than the “traditional marketing industry.”