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Under the "cost per action" system, advertisers decide what they are willing to pay for a specific action, like a purchase or a software download.
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Lerman is so confident of his technology that at TechCrunch50, he switched all 20,000 local businesses already using Yext over to the pay-per-action system.
Advertising.com, a unit of AOL, uses such a system to determine the right placement for cost-per-action ads on publishers' sites.
But Mr Tobaccowala thinks pay-per-action could become a real alternative to pay-per-click.
Citysearch operates on a pay-per-action model.
Imagine cost-per-action ads where the action is an in-store purchase.
* Save time by setting up AdWords conversion tracking: you can set your desired cost per action and pay for completed actions to hit your cost-per-action targets.
And its advertisers pay Liftoff on a cost-per-action model, rather than cost-per-install.
The way they charge advertisers is similar with pay-per-download or pay-per-action models.
As opposed to pay-per-click, pay-per-acquisition (or pay-per-action) means that the developer only pays if the desired action occurs.
Cost per action (CPA) is that advertisers charge per specific action such as filling a form, signing up for an offer, completing a survey, or downloading software.
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CEO of Professional Science Editing for Scientists @ prosciediting.com