Pay Per Click advertising is an affiliate marketing method in which the host is paid according to the number of clicks that they can provide to the advertiser’s website. These advertisements are acquired through a service such as Google AdWords, which maintains a listing of advertisers. When an account is created with AdWords, it will provide a list of ads to the subscriber, from which particular niches can be selected. Then AdWords will provide the codes to place these ads on the website. Whenever these ads get a click from a visitor, the host will get a small sum of money.
What are the Pros of Pay Per Click Advertising?
Pay Per Click advertising is a win-win situation for everyone involved. The host benefits from the residual income that the click through visits can create for them. The advertiser is benefited by the exposure obtained. The service, Google AdWords or any other, is benefited because it gets a commission from the advertiser for making its ads visible on the host website.
Pay Per Click ads can be optimized for the search engines. This guarantees a high visibility for them if done correctly. Using this form of advertising in conjunction with lead capture pages, a good list of targeted prospects can be created.
The cost factor is of paramount importance. It takes only a few cents to place these ads on the Internet and keep them there all the time. The process is automated, so it does not require manual intervention even when an ad gets a click through.
What are the Cons of Pay Per Click Advertising?
The ads are provided through a bidding process. If the bids are high, ads are guaranteed a higher page ranking. For most marketers, AdWords is a source of income too; hence, they would want to earn money from AdWords so that they can bid high. This can be possible through a higher page ranking. Thus, there is a cyclic effect in play.
Also, AdWords is all about survival of the fittest. Ads that perform well will persist, while those that don’t will perish, bogged down by the high costs that they will have to face.