Radically Rational

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Name: Chris
Location: Phoenix, Arizona, United States

Tuesday, September 28, 2004

General, non-specific point about Internet advertising

I just wanted to bring up the point that the way most Internet advertising programs work these days, organizations that advertise generally only pay for click-throughs. That is, when you click on their ads, they have to pay, whether or not you actually buy anything from them.

With advertising serving programs like adsense, a portion of this money is passed on from the advertiser to the person who owns/controls the page on which it appears. To universalize this, then, if lots of people clicked on a company's ads, that company would have to pay a heavy advertising fee and the person who owned the Web site would reap a windfall. At some point, then, the cost/benefit to the company would look extremely unfavorable and they'd probably pull their ads rather than risk being put out of business.

Just pointing out something you might not have thought about.

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