Cost Per Action Adchemy Scores $19M Funding

CPA model slowly building momentum

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Mayfield Fund, August Capital, and DoubleClick’s one-time private equity owner Hellman & Friedman, contributed a round of funding to the CPA transaction business.

Hellman & Friedman certainly had the money to afford a boost to Adchemy, after Google put $3.1 billion on the table to buy DoubleClick.

While that large-scale deal has Google squabbling with Europe and privacy advocates, Adchemy has been going on about its business.
Cost Per Action Adchemy Scores $19M Funding

The company wants to capitalize on what it sees as a move to CPA models in advertising. In CPA, advertisers pay when a customer converts by performing an agreed-upon action, like making a purchase or filling out a request for more information.

“As the economics of online advertising move from a cost per impression or cost-per-click to a cost-per-action model, marketing departments transform from cost centers into revenue hubs,” Murthy Nukala, founder and chief executive officer of Adchemy, said in a statement. “This is a profound shift.”

Adchemy expects to launch a new product this spring. It will join the existing Adchemy Actions that is being used by their online education and finance customers. “We don’t use incentive-based marketing, co-registration, or loosely controlled affiliate networks,” the company noted in regards to how they get results.

Cost Per Action Adchemy Scores $19M Funding
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  • Guest

    How do you think a Cost-Per-Action model could work for business services like consulting?  The obvious action would be simply for sales leads, but the real money would be in a "commission" on actual sales/contracts signed.  Do you think this could ever work?

    • Guest

      It would definitely work, I am working on a medical search engine at the moment, shoot me an email if your interested in learning more about it, atrahim @gmail .com

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