Pay Per Click Business Model

Published: 03rd August 2009
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The pay per click (PPC) business model is a new form of business that has developed online over the past 10 years or so. Why is it so important exactly? Why does online marketing take it so seriously? What does the pay per click future hold? Web sites and other things on the internet have to come to reply on the pay per click model in order to create, generate, and sustain revenue.

How exactly does pay per click work? It basically works by the fact that advertisers only will pay the host of the site only when their ad is clicked on by a user. There are many hosts out of the internet, and some of them include the operators of websites, blogs, and other sites out on the internet. The pay per click system is good for advertisers because of the fact that when they are paying the host they know that their advertisement has been looked at potential customers that might be open to buying the product. In addition, the advertiser has bid on that keyword phrase in order to get into good position in order to be noticed.

The pay per click business model has been very successful. As more advertising dollars have shifted to the web, it has created a thrive industry that has experienced a lot of growth over the past few years. There have been some concerns about the pay per click model, for a couple of reasons. One of the reasons why it was concerning at first also was due to the fact that there was some corruption in the business model at first. It was called click fraud and was done by corrupt web developers. This problem, while not completely eliminated has been severely cut by the main pay per click companies. By working to reduce the problem, this results in more confidence in the whole system. Another concerns was not that many people were aware of this industry, creating confusion for some people. These issues are unlikely to slow this business model though, and the pay per click model is likely to remain a force in the months and years to come.


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