Engaging Online Consumers with an Interactive Cost-Per-Action Advertising Model

Advertising and marketing budgets are often the first hit during an economic crisis. With the rise of e-commerce in recent years, both Internet-based and brick-and-mortar companies are competing for time and attention from Web visitors. While cost-per-click has long been a popular online advertising model, cost-per-action has risen as a competitor. Utilizing a beta test, this article compares a new interactive cost-per-action advertising model with the efficiency of the traditional cost-per-click model, with respect to total Web site visits and the potential for click fraud. Additionally, secondary data is used to discuss the benefits of engaging consumers in an interactive medium where learning can occur. Together, this research highlights the potential for online advertisers to get increased value using an engaging and cost effective alternative to the traditional, static cost-per-click advertising model.