Wednesday, June 3, 2009

How Pay Per Click Came to Being

By Sean Galusha

The introduction of the internet has brought convenience to the world and has helped a lot of businesses worldwide to promote and introduce their products to the global market through pay per click marketing. This tool has become widely used as this was seen to be very effective. Let's check out what is pay per click all about and how did it started.

Definition

Pay Per Click Marketing is a kind of tool that companies use to advertise in different websites-websites that are not their own.

In the real world, we see advertisements in billboards, television commercials, radio announcements, and newspapers. The owners of these billboards, television companies, radio networks, and newspapers get paid by the companies that display their products in the spaces allotted for them. Payment schemes vary and may depend on the size of the advertisement, the length of the advertisement by the minute or second, and the number of times it appeared in the media.

In comparison, advertising in the online world is done by allotting a space in websites for the ads and links of the businesses. This kind of advertisement is usually done through Google Adwords.

Once a company advertises on a website, the impact of the advertisement is not really felt and money is always an issue. Paying the website owner without a significant impact on the business is a sure way of losing money. This is the reason Pay Per Click Marketing was introduced. Website owners will only get paid if web surfers actually click the link of the advertisement.

History

Pay Per Click Marketing started in 1998. A man named Jeffrey Brewer designed the model and started a company of 25 employees. It was known as Goto.com and later on became Overture. Overture is now owned by Yahoo!

He presented a pay per click or PPC concept and this became the foundation of what we know as Pay Per Click. Google also became innovative in 1999 upon launching a search engine advertising scheme or method. However, it took a few more months before Adword was introduced in the year 2000. During this time, advertisements were only paid per thousand impressions.

In 2002, pay per click was introduced formally as an online concept in advertising. Since then, it has become a popular means of making money online. - 16890

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