Pay Per Result (PPR) is a pricing model where advertisers only pay when a specific, measurable outcome occurs from their marketing efforts. Unlike traditional pay-per-click (PPC) advertising, PPR focuses on actual results like sales, leads, or other conversion actions rather than just clicks.
How pay per result works
In a PPR model, advertisers define what constitutes a successful result. This could be a completed purchase, a form submission, or a phone call. Payment is only required when these predetermined actions occur.
This model shifts the risk from advertisers to publishers or advertising platforms. It provides better protection against click fraud since fake clicks without conversions don't cost anything.
Benefits of pay per result advertising
PPR offers several advantages for advertisers concerned about ad fraud:
- Reduced risk of wasting budget on invalid clicks
- Better alignment between advertising costs and actual business results
- Improved ROI tracking and measurement
- Natural protection against click fraud and bot traffic
- More predictable customer acquisition costs
Common types of pay per result campaigns
Several payment models fall under the PPR umbrella:
- Cost per acquisition (CPA): Payment for completed sales
- Cost per lead (CPL): Payment for lead form submissions
- Cost per install (CPI): Payment for app installations
- Cost per call (CPC): Payment for phone calls lasting a minimum duration
Limitations and considerations
While PPR provides better protection against fraud, it has some drawbacks. Not all advertising platforms offer PPR options. Those that do often charge higher rates per conversion.
Some advertisers may find it challenging to track complex customer journeys accurately. This can make it difficult to attribute results to specific marketing efforts.
Using PPR to combat click fraud
PPR serves as an effective strategy against click fraud because fraudulent clicks don't trigger payment. However, sophisticated fraud schemes may still attempt to complete conversion actions.
Combining PPR with other fraud prevention measures provides the strongest protection. This might include click fraud detection software and careful monitoring of conversion patterns.
