Marketing techniques are evolving and changing with the needs of the hour. The internet is now the happy hunting ground for all businesses to target their consumer base and advertise their products and services such that more sales are done in less time. The aspect of sales for different firms is now a time constrained output maximisation problem and managers and entrepreneurs alike are coming up with newer ideas to popularise and publicise their products more among the consumers. The age is one of affiliate and referral marketing. Pay per click advertising is an ingenious and innovative mechanism for smaller business houses to bring their line of services to the fore. The advantages and disadvantages of online marketing techniques will be the topic of discussion and how far each of them is successful at driving up the sales figures of their respective franchises.
Modern Concept: Pay Per Click Advertising
Pay per click advertising is a relatively modern concept in the field of advertising. Techniques like the one mentioned and others started to develop post the establishment of Google as the most important search engine in the market. 1998 was an important year for the online marketing industry as Page and Brin set up Google and gradually the same took over the online market as the leading search engine web portal and many businesses took the help of the same to get a wider distribution network for their products. With other social media websites like Orkut, Facebook and Twitter making their appearance on the platform and more than a billion people available online with the help of the same, businesses thought of marketing their products online to achieve greater sales.
Affiliate Advertising Through Pay Per Click:
Pay per click advertising is an affiliate advertising method whereby an affiliate publishes the advertisement on some popular social media website or search engine. Viewers clicking on the advertisement means payment to be made by the affiliate to the publisher as a fraction of the sales that he/she may be making with the help of this marketing technique.
We see that this is a particular case of a symbiotic relationship between the affiliate and the publisher. Both parties are better off after a transaction is carried out. The market for a particular business is not limited on the basis of market size or scope. Reduction of fixed costs on part of businesses enables them to invest more on advertising and research and development for their range of products.