Pay per click marketing has gained wide acceptance in the online advertising industry and business owners have seen pay per click as an effective tool in reaching out to potential customers. Website owners have also recognized the benefit of pay per click marketing in their zeal towards making money from their blogs and their websites.

But what does it mean to engage into pay per click marketing, and how did it came into being?

Though Google Adwords is a popular program following thepay per click concept, the idea did not originate from Google. It came from a man named Jeff Brewer who is also the founder of Goto.com. It was not yet known as pay per click back then, in fact, in 2003 it was called Overture, which was later bought by Yahoo to make it their Yahoo! search marketing.

When the idea of the pay per click system came out in 1998, it took Google two years to adopt the concept into their programs, and finally in 2000, Google Adwords came to life. It was Googles’ marketing tool that uses the idea of pay per click. However, it used impressions at first. The full adoption of the pay per click idea only occurred in 2002.

So what is pay per click and what does it mean to engage into it?

The pay per click marketing method is an advertising tool that is used by website owners and online business owners to promote their products on the Internet. Like in the usual advertising, newspaper, Television and radio companies allocate ad spaces for businesses. In online advertising, website owners have spaces in their websites intended for ads online.

However, pay per click marketing does not just end in posting an ad on a website. The impact of that ad to your business may be difficult to measure, thus pay per click focuses on the idea that the business owner only pays for the advertising cost when a potential customer or an interested online user is interested in the ad, clicks it and is being redirected to the business’ website.

What makes a big difference in pay per click marketing is that, business owners do not pay for the ad space or the size of the banner or text link you have for your ad, but it only involves advertising cost once an individual online is interested in your ad and clicks it.