Need For PPC Advertising Online

 

There has been a lot of discussion recently surrounding the most popular and widespread model on which internet advertising is based. The pay per click (PPC) model was first created way back in 1995, when Google first opened its doors to the general public.

 

Since then, PPC advertising has become the standard model for people wanting to promote products, sites, and companies via the internet. The importance of the model is certainly not to be underestimated. After all, Google alone is worth a projected $25 billion dollars, and has made its money simply by charging advertisers for their advertising efforts. 

So how exactly does pay per click advertising work? Well, here is a brief breakdown of the model.

 

The Pay Per Click Model

 

First of all, the pay per click model is highly efficient, because unless someone actually visits your website, you do not get charged. Other models, such as CPM (cost per thousand) charges each time the ad itself is displayed - meaning that there are no guaranteed results from a campaign. In this respect, PPC provides superior results, because ads will be displayed an unlimited number of times, until the desired daily click budget has been used up.

 

With this ideology, advertisers know that they will generate website visitors at the very least - and hence they have a higher probability of selling or making money than they would have if they paid for 10,000 ad impressions - and no one click on a single one of them.

 

As you can see, the evolution of this model was clearly a breakthrough in online advertising, because it epitomized the word "efficiency". To sum the pay per click model up - you could easily say that you "pay for what you get".

 

But do you? A dark side has recently emerged with the PPC model. Because Google is not the only site which hosts the ads from advertisers, affiliates have an incentive to click on ads which they are actually not genuinely interested in. This is known as click fraud - and it costs the industry hundreds of millions of dollars per year. 

 

What can you do about this? Absolutely nothing - and this is the problem. Click fraud is the biggest, and longest running issue with PPC advertising, and is set to plague the industry well in to the future.