The Boom of Online Advertising: Pay-Per-Click, The New Advertising Mantra!
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The internet runs only through revenues from advertising is what we all know. The internet is a big marketplace for people to look for buyers and sellers across the globe. Online advertising is booming since the number of internet users is growing rapidly. We had even blogged about the Internet’s growth story in our previous posts on “Indian entrepreneurs count gold on social networking business model”. Online advertising mainly runs through Pay-Per-Click advertising model in various forms such as text-based, video-based and other forms. It is important to understand what pay-per-click is and how does it work.
What is Pay-Per-Click?
Pay-Per-Click is a way for prospective advertisers to advertise their product/services/website on various search engines/ad-networks/websites/blogs by paying on a per click basis to an ad-network such as Google Adwords.
How does it work?
Advertisers have to bid on specific keywords that relate to their service/product/website. Each keyword has a specific value tag attached to it which can be in the range of 5 cents to 75.00 US$ per click and which can keep fluctuating from time-to-time. These keywords are ones which help the advertiser target their own prospective customers specifically. Once the advertiser has already bid on the specific keywords within the ad-networks channel of designing and placing the ads on its publisher network, the ads will appear naturally amongst sponsored listings of a publishers content which includes the advertisers keyword(s) organically. Thus, the advertiser can connect with the target market specifically through pay-per-click advertising which is purely context-based.
The big three in this field are:
Who are the beneficiaries?
The beneficiaries are webmasters, web publishers, bloggers, etc on one side of the channel and the advertisers on the other side. Most importantly, ad networks and search engines are the mediators and benefit the most from Pay-Per-click advertising as they are a channel for advertisers to advertise and publishers to make money through Pay-Per-Click advertising.
Recently, Pay-Per-Click advertising has evolved hugely as a popular form of advertising since it enables the advertisers to connect with the targeted consumer. Thus, Pay-Per-Click advertising is also known as “Search Engine Marketing” since it enables an advertiser to get more visibility through a paid inclusion based on a specific keyword alongside the search engine results on the same page.
Variations
Pay-Per-Click has various variations such as Pay-Per-Conversion, Pay-Per-Call, Pay-Per-Lead and Pay-Per-Delivery.
Lastly, as an internet user, you stand to benefit largely from ad networks as you can connect to various websites of interests to you through clicking on these pay-per-click ads. As more and more webmasters stand to advertise their website on these ad networks, the internet users will hugely benefit from the same.
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