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Performance-based advertising
Performance-based advertising is a type of advertising in which the advertiser pays only for measurable results. With other forms of advertising, they pay regardless of results. Performance-based advertising has become more common with the growth in popularity and ubiquity of internet-enabled media and marketplaces where it is possible to directly measure user actions that result from the advertisement.
Performance-based advertising on the internet
The search company Google receives the vast majority of its revenues from performance-based advertising. It was a pioneer in the use of the performance-based advertising approach call Cost-per-click (CPC). It charges advertisers only when the consumer clicks on the advertisement. In Google's model, the price for a click is determined by the competition between advertisers seeking to draw traffic from potential customers who are using Google to search for information about a product or service they many offer.
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