History of Pay Per Click Advertising

09Jul, 2018

Lets take a look at the origin of Pay-Per-Click Advertising

Well, the word itself explains you about PPC(Pay per click advertising). It is also called as cost per click (CPC). This is one of the vital models that online promoters use to direct people to the sites. In a simple form, it’s a model of internet marketing in which advertisers pay a fee each time one of their ads is clicked. Its buying visits to the site rather than earning. We can say that Search engine advertising is one of the most popular forms of PPC.

Let’s go deeper and find out when the PPC started and how it originated.

It was July 1996 the year the term PPC has come in to play and Planet Oasis was the web directory which had documented version of PPC, and it was the first one too. It was a desktop application linked to informational and commercial websites. The credit goes to Packard Bell NEC Computers. In the year 1997, there was a revolution in PPC, where it almost pooled over 400 major brands which were paying certain amount.

So, what happened in the 20th century

Google presents the Google AdWords tool, which was a self-helping platform for sponsors which allowed the advertisers to place ads for selected keywords and will pay money only when the ad is shown.

Then came Yahoo! with overture of $1.63 billion for ad syndication renewal.

And Google releases Google Analytics, allowing advertisers to better track the performance of their advertising campaigns.

In 2006 Facebook launched advertising on its website partnering with Microsoft adCenter to syndicate banners and sponsored links.

Game changers are Google, Facebook & Yahoo

In the same year Google acquires YouTube, the world’s largest online video site.

Facebook launches its own advertising platform allowing advertisers to target users by demographics and interests in 2007.

We can say that 2009 was the year of PPC network start-up’s. With internet usage on mobile devices increasing, the major PPC networks , this has made Google to focus on mobile advertising solution.

In 2012 Twitter rolls out a self-service advertising platform for US advertisers and planned to add other countries in the future.

New shape & Wings for Pay-Per-Click advertising

And thereafter there was a lot of innovation and upgradation with pay per click advertising with costs rising, companies are increasingly turning to conversion rate optimization and the use of landing pages to maximize performance. Advertising spend on PPC continues to grow with mobile too.

Today we have more than a lakh PPC service provider in India. The demand and ROI, unceasing innovations have all made it to be one of the best marketing concepts.

Do you have any idea how PPC works,

There is a secret formula behind this click, and its

Pay-per-click = Advertising cost / Ads clicked

Pretty simple Pay-per-click is calculated by dividing the advertising cost by the number of clicks generated by an advertisement. This is how it works.

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