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Google conducting beta test of pay-per-action ads

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Mountain View, Calif.—Google announced Tuesday that it is conducting a limited beta test of pay-per-action advertising, a new pricing model for Google AdWords.

Under the model, advertisers only pay when predetermined actions are completed on their own Web site. Examples of predetermined actions include when a customer makes a purchase or signs up for a newsletter. Google said the new pricing model is designed to complement its cost-per-click and cost-per-impression models.

Pay-per-action ads are only shown on Google AdSense for content sites, Google said, and AdSense publishers are able to choose whether they want to serve pay-per-action ads on their sites.

—Carol Krol

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