Description
Introduction
Paid advertising on the internet is now a massive and truly global
business, and with every passing day it just keeps on getting bigger.
For example, in the first quarter of 2006, internet advertising revenues
reached a new high of $3.9 billion and by the end of the third quarter of
the same year, this figure had gone past $4 billion.
However, in the same Q3 period in 2007, internet advertising revenues
surpassed $5.2 billion, setting another new high and continuing the
trend of record breaking quarters that has been a constant ever since
the Internet Advertising Bureau started keeping records back in 1996.
With the ever-increasing worldwide popularity of the internet, this is
probably only what you would expect.
Nevertheless, moving from $4 billion to $5.2 billion dollars in one year
indicates a phenomenal rate of growth, indicating that more and more
businesses are wiling to commit ever more substantial proportions of
their advertising budgets to promoting their businesses online in order
to get their name and products in front of an increasingly discerning
internet-connected global audience.
And, as they have done for the last few years, Google continue to
monopolize and dominate the online advertising industry with their preeminent advertising programs AdWords and AdSense.
This also continues a trend that was initially established when Google
revolutionized web publishing and advertising by turning personal blogs,
websites and forums into potential revenue generating centers for
individual webmasters, whilst at the same time setting new standards
for effective and affordable targeted promotion and advertising.
Both of Google’s phenomenally successful programs operate on the
basis of what is known as the Pay Per Click (PPC) or sometimes the
Cost Per Click (CPC) advertising business model.
In simple terms, using PPC involves a website or blog publisher
agreeing to carry AdSense ads on their site, whilst an advertiser who is
looking to promote their products online approaches Google through the
AdWords program.
Google then places these ads alongside relevant Google search engine
results, as well as on targeted websites and blogs.
