Pay per-click advertisements

hassen1 · #1 (**permalink**) 16th November 2006, 05:23 AM

Advertisers specify the words that should trigger their ads and the maximum amount they are willing to pay per click. When a user searches Google's search engine on www.google.com, ads for relevant words are shown as "sponsored link" on the right side of the screen, and sometimes above the main search results. The ordering of the paid listings depends on other advertisers' bids (thus the system is classified as P4P) and the historical click-through rates of all ads shown for a given search. The auction mechanism that determines the order of the ads has been called a "generalized second price" auction. It is a variation of the Vickrey auction.

humpty · #2 (**permalink**) 17th November 2006, 12:49 AM

what's P4P???

hassen1 · #3 (**permalink**) 17th November 2006, 03:11 AM

P4P is an abbreviation of the term "Pay For Performance". The concept was invented at Overture (now Yahoo! Search Marketing) and later adopted by their competitors, most famously Google's AdWords. Under the model advertisers bid on the rights to present a search result for a specific search terms in an open auction. When someone enters a search term that has been bid on, the results from the auction on that search term are presented, ranked from highest bid to lowest. It is also referred to as Pay per click advertising.

mini_0 · #4 (**permalink**) 16th March 2007, 05:12 AM

Publishers who are wanting to make money through pay per click are often led to make websites on high paying keywords like make money online or something like entertainment , music etc . This ensures that they get more money per click which is just not possible with low paying keywords . If high paying keywords pay you 60 per thousand impressions , low paying will only give 10 per thousand impressions.