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CPA model slowly building momentum

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.

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.