Google is beta testing a different business formula for its AdSense product that eases up on its lucrative pay-per-click model in favor of a pay-per-action model. The new program could help address the click fraud problem that dogs the per-per-click sector of the online ad industry.

The idea with the beta test is to provide advertisers more latitude with ad contracts by stipulating payment only for pre-determined actions that result from a Google ad, such as a certain product purchase or signing up for a newsletter.

Could the pay-per-action model help Google lead the way in addressing the industry's problem with click fraud? It could, if advertisers are provided more certainty that they are being charged for clicks made by humans, rather than automated programs, for example.

Full story: internetnews.com