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Pay-Per-Click Ads-What It Means

Apr 29, 2008
Often the name for a process or a business doesn't make sense. If you step back and take a look 'pay-per-click' is one of the strangest, especially if you are not conversant with internet terms. But if you are conversant with the world-wide-web the term 'pay-per-click' makes perfect sense.

Think about thisit costs money to run a web page on the internet, especially is you are a big powerful search engine. You need to pay to keep your domain and pay the staff that make it go day in and day out so that you can stay in front of the fast moving pace of the internet. You aren't some web page that was thrown up on a whim, and you have standards.

Just because you are this great search engine, there isn't someone waiting to pay the bills for you. There are no freebees.

So how are you going to earn the money that you need to keep yourself in business? After all, you already have a full time job; you're a search engine, you spend all day taking people where they want to go.

Then you see it. All those visitors coming to your site everyday, seeing everything you have on your pages. You could let people advertise on your site, sell them the traffic and a little space from your webpage. They get exposed to thousands of visitors and you can charge them whatever you like because they can't get displayed like this anywhere else.

There is one hitch, there are much more people out there doing internet surfing and seeing your page than are going to be people reading a newspaper or viewing the TV commercials.

Doesn't seem right if you charge them the same way as tv and newspaper's do. That is how you come to dream up pay-per-click as your answer.

Consider this. The greater the quantity of people visiting a website the more profit the business owner in question is going to make.

This is great for the powerful and popular search engine. You start charging the advertiser for each time a web-searcher clicks on an advertisement so he can go to the advertisers website. It doesn't even matter if the searcher stops and buys something. You can make it a small fee maybe 5 or 10 cents for each time. That way the advertisers won't complain.

Because they can gain back the fees you charge with the growth they have, there isn't a problem, but you realize that web surfers are often fickle and they sometimes click on the ads for no real 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.
About the Author
Need to optimize or "fix" your Adwords & PPC campaigns? Kirt Christensen manages over $600k in PPC spending & knows what it takes to make your account hum! When it comes to adwords help, he's the man!
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