Ask Dave Taylor: Tech and Business


What's the future of Pay Per Click (PPC) advertising?

Dave, I'm just getting started on a research project on alternative forms of pay per performance advertising such as pay per click or pay per call. I'm trying to identify companies or business models that have successfully built (or are trying to build) on pay per click/call/acquisition, etc. and would like to ask for your advice and opinion on this business segment.

The most common Internet-based advertising is now Pay Per Click. It's the foundation of advertising systems like Google's AdSense program, Yahoo's Overture, etc. I also believe that PPC is a logical reaction to the 90's "bubble" pay for impressions world, a model created when advertisers realized that a million eyeballs didn't necessarily translate into any sales at all.

Pay per acquisition is also widely used and is known in the online world as an affiliate program. For example, Amazon Associates, which has over 100,000 members who are including special links back to Amazon sales pages, but they aren't paid until the customer actually buys the book and completes the transaction.

Pay per call is the least common of the three, I think, but there are examples, including...