Turn, a new CPA-based search ad firm, gets funding

Turn, based in San Mateo, California is taking on Google AdWords. Their model is different though. They provide CPA SEM advertising versus Google's CPM/CPC model.

Couple notes from the Adweek story:

Barnett (CEO) believes the system (Google AdWods) has plenty of flaws, and he's betting his new venture, Turn, will be able to take advantage of those weaknesses.

Unlike Google, which charges advertisers on a per-click basis, Turn relies on a cost-per-action scheme. It charges advertisers only if users take desired actions, such as filling out registration forms or closing on sales. (A marketer such as Starwood, for example, could bid $20 for each hotel night booked, $3 for every e-mail sign-up and 75 cents for each site visit.)

The system also has over 60 characteristics which advertisers can select from -- more than Google. At ad:tech they are talking a lot about CPA networks and I think there will be a gradual shift to CPA because advertisers don't just want window shoppers, they want people who take action. In addition, it is significantly cheaper than CPC since they only pay on the actions they want.

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