Why CPA Should Replace PPC Programs
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Pay per click has been much more successful for online advertising than the methods that came before it. But it is not without its problems. Keep reading to find out what is going to replace it, and why.
PPC (pay per click) has changed the way advertising is done on the net; I dare say, it has changed the Internet itself. It has changed how websites view themselves and the way they view traffic to their sites. It used to be that would-be online entrepreneurs would just build sites and get web surfers to view them, then make money by selling services or products.
Now, with the advent of pay per click programs, every web publisher views his or her site as an opportunity to become a six figure earner. The search engines see it as their opportunity to make billions, everybody is making money, and everybody is happy. So how can I dare to suggest that PPC should go away and be replace by CPA (cost per action)?
The Success of Pay Per Click
Pay per click is the kind of package that Google offers via its AdSense program, and Yahoo offers through its Sitematch program. It simply means that the advertiser pays a particular amount of money every time his or her link is clicked on. Most PPC programs are based on context, which means that if a web site registers to be part of the search engine's PPC program, the search engine's crawler scans each page of the website and assigns relevant adverts (using simple text links), all in a very unobtrusive manner. Once a user visiting a web site in the program clicks on one of the links, the automated system calculates how much is due to the website owner, how much is due to the search engine, and how much the advertiser is going to pay.
Other programs are based on the SERPs; the position of an advertiser's ad is based on how high he bids for particular keywords in comparison to others bidding for the same words. These ads may then be listed as sponsored links in particular key word searches. Some search engines, such as Google, place the link for the ad with the most click throughs on top of their sponsored ad listings, in an effort to still offer the most relevant listings to search queries.
The contextual pay per click program may be the single most revolutionary thing to have happened on the Internet, and one of the most wildly successful. This is because it keeps online advertisements unobtrusive to the web surfer. And the browsing audience, like every other audience, despises advertising. Think about the general hatred with which pop-ups and spam emails are viewed. Searchers derive pleasure from finally having control over what they view and what they don't; this level of control has never been available on any other media before the Internet. AdSense solved millions of head scratching advertisers' problems: finally there was a way of advertising on the net that worked for more than six months! PPC programs were wildly successful, perhaps too successful.
Next: A Numbers Game >>
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