April 21, 2018

How Effective Is Pay Per Click In Gauging Consumer Interest?

In the world of internet marketing, pay per click and Adwords is an integral part of the revenue generating process. This simple technique opened the door to a whole new generation of entrepreneurs. All they needed was a website half the job was already done.

Under the pay per click model advertisers pay the website owner to place ads on their web sites. Normally, the website carries or promotes products of similar interests. When someone makes a query about a specific product, search engines scour the net for possible matches and rank them according to relevance. When a web surfer lands on the website owner’s page, not only will he be confronted with invitations from the website owner, but banner ads from product advertisers. These ads carry unique signatures or embedded codes that communicate back to the advertiser the identity of the website owner and registers the click to his account.

The rate of pay is determined by how many times visitors to a particular website clicks on the ad. Normally, a single click by itself doesn’t generate a huge payout, say a penny or so, but when you consider that the number of visitors to a website can run into the thousands or tens of thousands per day the income generated by the aggregate of clicks could be substantial.

A modified version of PPC is the affiliate program. Under this model, the website owner agrees to host the advertiser’s banners on his site in return for a share of the revenue he generates. A website visitor must not only click on the ad, but make a purchase also. The website owner’s earnings depend on percentage the two parties agreed upon. However, should the website owner fail to generate any sales, the advertiser isn’t under any obligation to pay and therefore incurs no expense for placing his ads on the owner’s website.

It was a novel advertising idea at first and a lot of people made money. Now, however, there are so many websites out there carrying the same ads that some web surfers may be beginning to feel a little overwhelmed. But, that doesn’t mean that those web surfers don’t end up buying the advertiser’s product anyhow.

Admittedly, PPC is a great indicator of how well a product is received in certain geographic areas, but that interest does not translate into sales. Therefore, maybe advertisers should think about revamping the old model and have the visitor, after clicking on the ad, greeted with a short questionnaire asking whether or not he actually intends to buy the product. This would give the advertisers a better grasp of the ads’ overall effectiveness.