CPC Advertising as an Advertiser and Publisher

When Google appeared, the arrival of CPC advertising was an incredible explosion. No longer were people just selling banners. Instead, they were selling blocks of ads that, if they were clicked, would bring in some money for that click. Instead of selling an ad for $500, they may get 1000 clicks at fifty cents a pop. The same amount of money, but the potential to earn more and more was obviously there. CPC advertising stands for cost per click. So, in theory, as an advertiser, you’re paying per click and as a publisher, you’re earning per click received on your site.
So, the fundamental question. Should advertisers and publishers use CPC advertising?

Advertiser

Yes. It is more expensive than CPM advertising, but typically speaking, the traffic that is sent to your site from CPC advertising is really targeted and it converts a lot more than CPM. CPC advertising is a lot of experimentation and determining exactly how much you should spend per click per campaign. You can set a daily budget and then just sit back and watch as the clicks roll in. It becomes more dangerous, though, because now you have to have in the back of your mind the idea of click fraud. Are all the clicks coming to your site genuine? It becomes a nuisance.

Publisher

Yes, but only sometimes. CPC advertising for a publisher is great, but the thing to remember is you’re dealing with a middle man like Google, so they’re taking a huge chunk. Let’s say, as well, that you have an ad space that you sell for $500. You change it to Google Ads and then sit it there. Now, the space could make nothing. The space could make less than the $500 and the space could make more. The issue is, you’re depending on people clicking on ads to determine how much you make there instead of just getting a lump $500 sum. So, which is better? That’s up to you.
CPC advertising, though, is an incredible move for advertisers and publishers. I often times suggest it for advertisers because I am a proponent of private advertising. However, it can always find its place on a website to try and earn a little extra money to supplement the hosting or whatever. CPC advertising was revolutionary when it came out and it has continued to earn people millions of dollars. Google has earned billions.