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    horse_99
    Joined: Dec 22, 2004
    # Posts: 2

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    Posted: 2004-Dec-22 22:35
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    Hi, I'm new here at this forum smile. The titel of my topic says it all, I think. One thing I don't get about PPC engines: advertisers pay the PPC owner(s) for every click on there link and the PPC owner(s) gets paid by the advertiser for that click. But the PPC owner(s) also pay the advertisers: why do they do that and where does this money come from?

    Thanks for every reply!!! Greets.



    vanachte
    Joined: Feb 10, 2004
    # Posts: 404

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    Posted: 2004-Dec-23 00:34
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    I advertise. My term widgets costs 50 cents.

    You the user click on the ad for widgets, however, this add is part of the "content match" or whatever program. The site owner displaying the add gets a share of that 50 cents. Often, 50%. They get this because they are displaying the ad so they get a cut. The PPC engine supplies them with the ads, and does all the collecting of fees associated with the ad so they get the rest.

    Ad appears on widgetsite.com, user Clicks, Google pays widgesite 25 cents and keeps 25 cents.
    I pay Google 50 Cents

    OR

    User seraches in Google, Clicks on AdWords ad, Google keeps entire 50 cents. The advertiser is billed.

    Does that help? Its pretty rough, but may give some insight



    horse_99
    Joined: Dec 22, 2004
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    Posted: 2004-Dec-23 10:29
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    Ah I see smile. Thank you for the reply!



    flyingrose
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    Joined: Oct 30, 2003
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    Posted: 2004-Dec-24 02:51
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    Thanks for the clear explanation Vanachte.


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