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December 29, 2006, 3:26 pm
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I would like some opinion on a comparison of pay per click advertising
as compared to fixed daily rate advertising:
With pay per click advertsing, ads are targeted at users who enter
specific keywords on search engines. When the user responds and click
on the ad, the advertiser is charged a fee for the traffic.
With fixed daily rate advertising, the advertiser pays a fixed daily
rate for a specific period of time only and not for the amount of times
users click through on his ad. In this case the ad can also be keyword
Both advertising methods employs a bidding system. The advertiser who
are prepared to pay the highest price for a keyword or the highest
daily rate for his ad, he's ad will be displayed first at the top of
the search result.
Pay per click advertising is effective but very expensive if it is not
implemented by a professional. Analytical tools to monitor the
effectiveness of pay per click advertising campaigns are also very
complicated to implement and analyze.
My main argument against pay per click advertising and for fixed daily
rate advertising is that hyperlinks on the Internet are free and users
should not pay for using it.
With fixed daily rate advertising the advertiser can receive unlimited
traffic (click throughs on his ad) for a fixed fee. From an accounting
point of view this is a much better deal as the advertiser can properly
plan his advertising budget. Statistics is still available for the
number of click throughs on his ad to show its effectiveness.
An examle of a search engine that employs fixed daily rate advertising
Please let me have your feedback on this.