The Pay Per Click Model In this paper I will be examining the advertising product known as pay per click advertising. I will begin by defining the product model, then briefly look at the history of pay per click, by discussing how and when the concept was developed. I will continue by looking at the changes made to the model, its current state, and finally I will concider what the future holds for this type of advertising. Pay per click advertising is a product model that directs traffic to a website. Pay per click ads can be found at the top, bottom, or down the right hand side of a website or search engine’s results. Although they are clearly labeled as ads the concept of the pay per click model is to ensure exposure with a place of
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These early search engines were facing some difficulties, including the amount of unwanted or unrelated content, and finding a reliable revenue flow. Two solutions to these problems evolved from this period, one created by GoTo.com, and the other was Google.com. GoTo.com was founded by Bill Gross in February, 1998. Search engines at the time had a problem displaying relevant websites and were often inundated with spam results. Inspired by the Yellow Pages telephone directories that allowed companies to purchase more prominent ad space, and therefore increase their chances of being noticed. Gross reasoned that legitimate companies willing to pay for highly targeted positioning would drive down spam results. Gross was so confident in his advertising model, he introduced a novel price scheme. Instead of paying every time the ad was seen, advertisers only payed when a customer actually clicked on the ad, being directed to the advertiser’s website (Oremus, 2013, …show more content…
students. The more sophisticated search engine no longer relied solely on keywords but evaluated sites on their authority and integrity, based on the sites that linked to them. Google was launched in September of 1998 and despite its superior algorithm, they found it hard to generate the advertising revenue needed to succeed. That is when they started to look closely at one of their rivals GoTo.com. Bill Gross of GoTo.com failed to patent his concept, so Google had no trouble incorporating and improving on the advertising model, with the establishment of their advertising company Adwords. Google soon became the preferred search engine and pay per click advertising venue (0remus, 2013,
These early search engines were facing some difficulties, including the amount of unwanted or unrelated content, and finding a reliable revenue flow. Two solutions to these problems evolved from this period, one created by GoTo.com, and the other was Google.com. GoTo.com was founded by Bill Gross in February, 1998. Search engines at the time had a problem displaying relevant websites and were often inundated with spam results. Inspired by the Yellow Pages telephone directories that allowed companies to purchase more prominent ad space, and therefore increase their chances of being noticed. Gross reasoned that legitimate companies willing to pay for highly targeted positioning would drive down spam results. Gross was so confident in his advertising model, he introduced a novel price scheme. Instead of paying every time the ad was seen, advertisers only payed when a customer actually clicked on the ad, being directed to the advertiser’s website (Oremus, 2013, …show more content…
students. The more sophisticated search engine no longer relied solely on keywords but evaluated sites on their authority and integrity, based on the sites that linked to them. Google was launched in September of 1998 and despite its superior algorithm, they found it hard to generate the advertising revenue needed to succeed. That is when they started to look closely at one of their rivals GoTo.com. Bill Gross of GoTo.com failed to patent his concept, so Google had no trouble incorporating and improving on the advertising model, with the establishment of their advertising company Adwords. Google soon became the preferred search engine and pay per click advertising venue (0remus, 2013,