Google has announced that it is rolling out a new beta test that it has labelled as “pay-per-action” advertising. Under the new program, businesses using Adwords advertising, will define specific actions that they are willing to pay for such as, a visitor opt-in, a certain page view or an actual sale. They also define the amount that they are willing to pay based on the type of action.

When the advertisers’ ad is clicked by a visitor, Google will in turn, only bill the advertiser if the predetermined action is completed. An advertiser needs to establish a conversion tracking system and then, create the adverts. Ads are then displayed on the so called publisher websites that comprise the Google content network. Publishers will also be introduced to new ad units under this new pay-per-action model that can be featured on their sites.

In a nut shell, with this new Google proposition, advertisers only pay for desired results. And content publishers determine whether to run a specific type of ad or group of ads on their websites. Initially, this pay-per-action beta test is only available to advertisers in the United States.

From a publisher’s perspective, there is some risk reversal in featuring the new cost-per-click ads. There is no guarantee that the publisher will receive any payment for a given ad that gets clicked by a visitor from their site. From the advertiser point of view, they will no longer be charged for ads that are ineffective and the annoying risk of click fraud is going to be significantly reduced.

Along side this pay-per-action news, Google has also revealed that it will be adding click-to-play video ads to their line-up of text, Flash and image ad formats all being supported currently by it’s content network. At launch, video ads will be available to AdWords advertisers in the US, Canada and Japan and progressing to other global regions eventually.

According to Googles’ “Inside Adwords”, users will have total control of the ad viewing experience;

“Finally, unlike some intrusive advertising, users will have complete control. When a page loads, only a static image will be visible; the video will not start playing until the user initiates it. He or she will be able to advance the video, pause it, adjust the volume or click through to the advertiser’s site,…

But, you may say, video is only for big branding oriented advertisers. We beg to differ. This feature makes video ads much more accessible to all advertisers. Now, an owner of a small bed & breakfast in Lake Tahoe can put a video tour of his beautiful chalet right next to an article that talks about skiing the epic slopes of Squaw Valley.”