What's the Difference Between "Pay Per Action" and "Pay Per Transaction?"

Some ad networks now feature a pay per action model, where payment to the ad network happens only when users take some pre-defined action. Some might occasionally consider a pay per transaction model, where the ad network gets paid only when a consumer makes a purchase.

So connect the dots. What is the other well-understood payment model? Shopping. People pay when they buy a product or service. How does that fit with advertising? At some point, more "advertising:" other than brand advertising is going to shift to "enable transactions," with the marketing entity getting paid a percentage of the sales amount. In other words, commerce is the future of many businesses that today are supported by advertising.