A Brief History of the Pay per Click Advertising

The pay per click advertising model has a very interesting history behind it. The idea of the pay per click advertising germinated in the year 1998 in a company called Goto.com. A 25 employee company that was just a startup, later on was rechristened as Overture and bought by Yahoo for $1.63 billion. In the year 1998 and in the month of February Jeffrey Brewer who was an employee in the company presented the pay per click search engine proof of concept to the TED conference in California. However the credit for the development of the PPC model of advertising has been given to the Idea lab and the Goto.com founder Bill Gross.

Google adopted the method of pay per click only in the year 1999 and formally introduced the AdWords system in the year 2000. However the Google Pay per Click method only started in the year 2002. Till then Google charged at the rate of cost per thousand impressions. In the year 2003 Yahoo showed interest in buying the Goto.com that had now been renamed as Overture.

Determination of the Cost per Click:

The CPC is basically classified into two types of costing methods that are basically the bid based as well as the flat rate CPC. Both the methods are based on the nature and tenor of the visitors that visit that site and the benefit that the advertiser can get from that visit. Just like any other type of advertising the greatest emphasis is on the targeted audience. The things that are taken into account are the targeted interest of the visitor, his intent that whether he wants to make the purchase or not, the location that he is present at the moment, and the day as well as the time of the visit. 

Google pay per click method is one of the finest and the most far reaching methods in the world of virtual marketing. Companies that are only interested in advertising through a model that is based on making payments when their ad is clicked upon should opt for the Google pay per click advertising model.