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To set a price for a service of fee payment gateway By kabir khan

  in Business | Published 2015-04-01 03:38:28 | 107 Reads | Unrated

Summary

With traditional media such as newspapers, radio, and TV, the advertiser pays according to the size of the audience that might see an add the equivalent measure on the Internet is cost per thousand (CPM) page views of free payment gateway when an ad is displayed.

Full Content

Google found another way to generate ad revenue—the company's co-founders borrowed the cost-per-click system from Overture Services, Inc. Overture, created in 1998 under the name Go To, offered advertisers the option to bid on how much they would be willing to pay to appear at the top of search results. Advertisers paid a fee each time someone clicked a link to their website.

Google combined this model with contextual ad display, wherein an ad appears only when a user's query matches keywords chosen by the advertiser within specified geographical areas. Google also d

ecided to let advertisers decide how much they wanted to pay per click. Here, economists will recognize the principle of price differentiation formulated by the engineer-economist Jules DuPont in 1849: "To set a price for a service of fee payment gateway, don't base it on what it costs the provider, but instead set the price according to the importance of the service to the user.

By adopting a cost-per-click strategy, Google limited advertiser risk and reduced the uncertainty connected with all mass advertising. Essentially this change was a tweak of a detail, but it was a major breakthrough. Google’s engineers discovered one of the best kept business secrets: Advertisers generally can't evaluate the effectiveness of an ad campaign. In fact, according to a 2005 study by the Association of National Advertisers (ANA

• Seventy-three percent of managers did not know how to determine an ad campaign's effect on sales.

• Only 19 percent of managers were satisfied with their ability to measure the return on investment from advertising.

• More significantly, 63 percent could not estimate the potential impact on sales if their advertising budget was reduced by 10 percent. Uncertainty affects all advertisers, but especially small ones who lack the resources to buy or perform market research on their ads' effectiveness. These small advertisers—individual consultants, small businesses, and specialized companies that can't afford mass media—were the ones Google attracted early on.

With traditional media such as newspapers, radio, and TV, the advertiser pays according to the size of the audience that might see an add the equivalent measure on the Internet is cost per thousand (CPM) page views of free payment gateway when an ad is displayed. A CPM pricing strategy favors advertisers with the most money because only they can afford to pay for media with large audiences. The overall cost is high, but the cost per impression is very low. When the cost of advertising is based on audience size, for example, a 30-second commercial on CBS is less expensive per impression than a four-color, full-page ad in a magazine with only a few thousand readers.

By tying payment to a result, cost-per-click changed the rules of the game. Small-budget advertisers get less exposure than those who spend more, but they aren't entirely excluded from the medium. If they plan skillfully and create effective ads, they may do very well.

In fact, Google gives priority to ads that get the best results. Advertisers bid on keywords or phrases and set a budget for their ad campaign. Ads that are clicked more often, using the same keywords, appear higher on the page. As a result, although one advertiser may bid more than another for a particular keyword or phrase, that advertiser's ad may appear higher on the page because users click it more often. While the cost-per-click is often higher than CPM's cost per audience member, in the world of CPC an advertiser's financial clout is less important than ad quality and its ability to attract potential customers. Because advertisers decide what they are willing to spend, even advertisers with tiny budgets can buy advertising.

 

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Feepal is the fastest growing online community for fee payment gateway Relevant and Much needed information about including latest news about online payment and free payment gateway for college Current Affairs and CSAT is updated on a regular basis.

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