cornelia accumulator: Small Players Seek Alternative to the Expense of Pay-Per-Click ...

Tuesday, October 30, 2012

Small Players Seek Alternative to the Expense of Pay-Per-Click ...

In recent decades, we?ve witnessed a rapid pace of technological developments, one of which is a wide use of internet and the online markets. Many of people?s dream working places, such as Google and Facebook, are the titans of the digital world. Possessing millions of users, meaning millions of potential buyers, those companies make most of their profits by allowing the advertisements on their websites and search engines. In the class, we?ve talked about such mechanism called pay-per-click advertising. For example, if we type certain keyword into the Google search engine, related ads will appear on the side bar. The companies that placed the ads pay a certain price to Google each time a user clicks the ad. Although the mechanism might seem that it is not quite effective in attracting the potential consumers, the article tells us the case for Tom Telford?s rental management company, which saw a phenomenal results through this method of advertising. Like the article illustrates, it is quite profitable especially for the large companies such as Google and Amazon.

Yet, the price per click is very high for such large searching websites (like Google) because they have a large pool of devoted users. Therefore, it gets harder for small companies to get a slot to advertise their goods on such websites. In the article, such hardship that the small companies face is clearly illustrated: Mr. Telford had to pay more than twice per click than he paid initially as the competitions to get the slots got more competitive. Large companies capable of offering a high price per click can easily get the slots for their ads while small companies have to pay more than they can afford in order to get the ad slots. Furthermore, even though the company is paying the site every time a user clicks the ads, the interest of the user may range from misguided to merely erratic. In such case, the company is merely paying the site without any increased business.

As suggested by the referred article, small business owners can be better off by seeking alternative strategy. One alternative suggested is to create content around the keywords people are searching for. In a rapidly changing world, it is critical to stay alert and move into the direction that would yield the best result.

http://www.nytimes.com/2012/10/18/business/smallbusiness/as-pay-per-click-ad-costs-rise-small-businesses-search-for-alternatives.html?_r=0

-HL