What is Pay Per Click Advertising?
Of all the names given to all the processes and all the businesses, that don’t seem to make much sense, pay-per-click advertising seems to make the least senseat least to the uninitiated. If you happen to be one of the people who are familiar with internet marketing and the ‘world wide web’ then you know that pay-per-click makes perfect sense.
Consider this. Operating a webpage on the internet costs money, particularly if you happen to be a big, powerful search engine. You are going to have to pay the fees to hold on to your domain and pay for the staff to keep it up and running (after all, you are a big, powerful search engine, not some small soap opera review; your people are going to need to be on hand night and day and give you their undivided attention in order to assure that you are ahead of the game and operating as you should be).
This is not free, yet no one offers to send you money just for being the greatest search engine ever (ungrateful peons).
Well, how are you going to get the money to pay the bills and stay in business? You are busy all the time hooking searchers up with the places they want to go. That is full-time work by itself.
Then it occurs to you. Every day hundreds upon thousands of people come to see you. They see everything that is printed upon your pages. What if you offered to let advertisers take advantage of that fact and use you to advertise their products? They gain much needed exposure and you can charge them as much as you like for the service because they are not going to get this opportunity anyplace else.
The only problem is that many more people are going to see you while they go about their daily internet surfing than are going to read a newspaper or watch a television commercial.
Charging them the same way as the newspaper or television station does doesn’t feel right. What if you can charge for each time someone wants to see what the advertiser has to offer, for each time they ‘click’ on their ad.
Think about thisthe more people that visit a webpage the bigger profits the businessman is going to make.
This is a great opportunity for you. If you charge the advertiser a small fee, maybe $0.05 or $0.10 each time a surfer comes through on the web and chooses their advertisement and clicks on it, even if the surfer doesn’t buy anything, your advertiser is not going to complain.
They inevitably recoup the fee you charge them through the growth of their profit margin; however, you know the fickleness of web browsers and how they like to click on these advertisements for no apparent reason.
You then come up with a way to help the advertisers by letting them choose a budgetary limit for the service you offer. They can set a limit of how many ‘hits’ they can get before they have their advertisement not be shown anymore to limit the expenses they may have. In this manner a surfer who wants to click on your ad many times will not be allowed to drain your advertising coffers dry.
That is what is now known as pay-per-click (or ppc) advertising.
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