Abstract

Google contended that it had zeroed in on the perfect ad pricing model, “Çost per Action”. It was testing this model in its AdWord product. The widely used “Cost per Click” model had been prone to click frauds with Google itself bearing the burnt. If a company of Google’s stature goes ahead and adopts this new ad pricing model, it would definitely change the dynamics of the online ad industry.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Pricing
• and Pricing models.

Keywords

Google, online ad, AdWord, AdSense, Advertising, product management, pricing, ad pricing model, cost per click, cost per action, click fraud