469:
at scale, with thousands or even millions of PPC bids controlled by a highly automated system. The system generally sets each bid based on the goal that has been set for it, such as maximizing profit, maximizing traffic, getting the very targeted customer at break even, and so forth. The system is usually tied into the advertiser's website and fed the results of each click, which then allows it to set bids. The effectiveness of these systems is directly related to the quality and quantity of the performance data that they have to work with — low-traffic ads can lead to a scarcity of data problem that renders many bid management tools useless at worst, or inefficient at best.
443:, the major advertising networks allow for contextual ads to be placed on the properties of 3rd-parties with whom they have partnered. These publishers sign up to host ads on behalf of the network. In return, they receive a portion of the ad revenue that the network generates, which can be anywhere from 50% to over 80% of the gross revenue paid by advertisers. These properties are often referred to as a
1262:
376:
what the advertiser can gain from that visit, which is usually short-term or long-term revenue. As with other forms of advertising, targeting is key, and factors that often play into PPC campaigns include the target's interest (often defined by a search term they have entered into a search engine or the content of a page that they are browsing),
400:, which typically publish rate cards. However, these rates are sometimes minimal, and advertisers can pay more for greater visibility. These sites are usually neatly compartmentalized into product or service categories, allowing a high degree of targeting by advertisers. In many cases, the entire core content of these sites is paid ads.
423:), the automated auction takes place whenever a search for the keyword that is being bid upon occurs. All bids for the keyword that targets the searcher's Geo-location, the day and time of the search, etc. are then compared, and the winner is determined. All this happens in real-time, therefore this is called
638:
was estimated to have defrauded advertisers several millions of dollars in combined ad costs. The case highlighted the extent of ad fraud; as of 2018, ad fraud annual revenue was on track to be worth more than the illicit drug trade, with over $ 19 billion estimated to have been stolen by click fraudsters.
637:
Publishers who illegitimately click on or fraudulently arrange for clicks to be generated on adverts, in order to increase their own publisher revenues. In 2018, the FBI, in partnership with Google and other major industry ad platforms, cracked down on an illegal ad fraud scheme known as "3ve", which
468:
In order to maximize success and achieve scale, automated bid management systems can be deployed. These systems can be used directly by the advertiser, though they are more commonly used by advertising agencies that offer PPC bid management as a service. These tools generally allow for bid management
355:
about how effective the advertising was. Clicks are a way to measure attention and interest. If the main purpose of an ad is to generate a click, or more specifically drive traffic to a destination, then pay-per-click is the preferred metric. The quality and placement of the advertisement will affect
302:
have also adopted pay-per-click as one of their advertising models. The amount advertisers pay depends on the publisher and is usually driven by two major factors: the quality of the ad, and the maximum bid the advertiser is willing to pay per click measured against its competitors' bids. In general,
375:
There are two primary models for determining pay-per-click: flat-rate and bid-based. In both cases, the advertiser must consider the potential value of a click from a given source. This value is based on the type of individual the advertiser is expecting to receive as a visitor to their website, and
392:
In the flat-rate model, the advertiser and publisher agree upon a fixed amount that will be paid for each click. In many cases, the publisher has a rate card that lists the pay-per-click (PPC) within different areas of their website or network. These various amounts are often related to the content
641:
Advertisers who attempt to derail competitors' adverts, by clicking on them in an effort to raise their competitors' costs in order to give themselves an unfair advantage in the advertising space. The Google Ads platforms claim to be able to identify such clicks, and label such traffic as "invalid
546:
did not start syndicating GoTo.com (later
Overture) advertisers until November 2001. Prior to this, Yahoo's primary source of SERPs advertising included contextual IAB advertising units (mainly 468x60 display ads). When the syndication contract with Yahoo! was up for renewal in July 2003, Yahoo!
480:
Several sites claim to be the first PPC model on the web, with many appearing in the mid-1990s. For example, in 1996, the first known and documented version of a PPC was included in a web directory called Planet Oasis. This was a desktop application featuring links to informational and commercial
435:
are used to give each advertiser's advert an ad rank. The ad with the highest ad rank shows up first. The predominant three match types for both Google and Bing are Broad, Exact, and Phrase Match. Google Ads and Bing Ads also offer the Broad Match
Modifier type (although Google retired it in July
354:
and drive the cost of running an advertisement campaign as low as possible while retaining set goals. In Cost Per
Thousand Impressions (CPM), the advertiser only pays for every 1000 impressions of the ad. Pay-per-click (PPC) has an advantage over cost-per-impression in that it conveys information
464:
Advertisers pay for every single click they receive, with the actual amount paid based on the amount of bid. It is common practice amongst auction hosts to charge a winning bidder just slightly more (e.g. one penny) than the next highest bidder or the actual amount bid, whichever is lower. This
306:
However, websites can offer PPC ads. Websites that utilize PPC ads will display an advertisement when a query (keyword or phrase) matches an advertiser's keyword list that has been added in different ad groups, or when a content site displays relevant content. Such advertisements are called
393:
on pages, with content that generally attracts more valuable visitors having a higher cost per click than content that attracts less valuable visitors. However, in many cases, advertisers can negotiate lower rates, especially when committing to a long-term or high-value contract.
575:
began to be the search engine that Yahoo used to provide its search results. Since they joined forces, their PPC platform was renamed AdCenter. Their combined network of third-party sites that allow AdCenter ads to populate banner and text ads on their site is called BingAds.
566:
had been the three largest network operators, all three operating under a bid-based model. For example, in the year 2014, PPC(AdWords) or online advertising contributed approximately US$ 45 billion of the total US$ 66 billion of Google's annual revenue In 2010, Yahoo and
252:
relevant to their target market and pay when ads (text-based search ads or shopping ads that are a combination of images and text) are clicked. In contrast, content sites commonly charge a fixed price per click rather than use a bidding system.
485:
NEC Computers. The initial reactions from commercial companies to Ark
Interface II's "pay-per-visit" model were skeptical, however. By the end of 1997, over 400 major brands were paying between $ .005 to $ .25 per click plus a placement fee.
531:
system was introduced, allowing advertisers to create text ads for placement on the Google search engine. However, PPC was only introduced in 2002; until then, advertisements were charged at
264:, are shown on websites with related content that have agreed to show ads and are typically not pay-per-click advertising, but instead, usually charge on a cost per thousand impressions (
607:(ACCC) in possibly the first legal case of its kind. The ACCC ruled that Google was responsible for the content of its sponsored AdWords ads that had shown links to a car sales website
619:. Google was found not liable for the misleading advertisements run through AdWords despite the fact that the ads were served up by Google and created using the company's tools.
465:
avoids situations where bidders are constantly adjusting their bids by very small amounts to see if they can still win the auction while paying just a little bit less per click.
966:
604:
615:. The ACCC said the ads were deceptive, as they suggested Carsales was connected to the Honda company. The ruling was later overturned when Google appealed to the
453:
because the ad spots are associated with keywords based on the context of the page on which they are found. In general, ads on content networks have a much lower
436:
2021) which differs from broad match in that the keyword must contain the actual keyword terms in any order and doesn't include relevant variations of the terms.
201:
539:(CPM). Overture has filed a patent infringement lawsuit against Google, saying the rival search service overstepped its bounds with its ad placement tools.
408:
The advertiser signs a contract that allows them to compete against other advertisers in a private auction hosted by a publisher or, more commonly, an
1307:
1011:
Jansen, B. J. (2011). Understanding
Sponsored Search: Coverage of the Core Elements of Keyword Advertising. Cambridge University Press: Cambridge, UK.
1218:
1146:
509:. This presentation and the events that followed created the PPC advertising system. Credit for the concept of the PPC model is generally given to
461:(CR) than ads found on SERPs and consequently are less highly valued. Content network properties can include websites, newsletters, and e-mails.
367:
Cost-per-click (CPC) is calculated by dividing the advertising cost by the number of clicks generated by an advertisement. The basic formula is:
431:, there can be multiple winners whose positions on the page are influenced by the amount each has bid and the quality of their ad. The bid and
1345:
1200:
862:
472:
As a rule, the contextual advertising system (Google Ads, Yandex.Direct, etc.) uses an auction approach as the advertising payment system.
2153:
2138:
1407:
912:
1232:
384:), a device used (e.g. whether the user is searching from a desktop device or mobile) and the day and time that they are browsing.
416:), usually using online tools to do so. The auction plays out in an automated fashion every time a visitor triggers the ad spot.
194:
59:
412:. Each advertiser informs the host of the maximum amount that he or she is willing to pay for a given ad spot (often based on a
1688:
2148:
1973:
1629:
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987:
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2128:
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330:, although Google and others have implemented automated systems to guard against abusive clicks by competitors or corrupt
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428:
420:
320:
54:
1147:"Link to Webpronews.com Article: Yahoo And Microsoft Introduce The Yahoo Bing Network, adCenter Becomes Bing Ads"
413:
271:
249:
814:
1293:
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427:
or RTB, and in a fraction of a second. In situations where there are multiple ad spots, a common occurrence on
397:
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1201:"VARN Original Research: Almost 60% of People Still Don't Recognise Google Paid Ads When They See Them"
789:
2078:
1377:
810:
572:
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31:
2010:
2005:
1930:
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633:
A common concern amongst advertisers is the practice known as "click fraud". This takes two forms:
532:
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126:
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In 2012, Google was initially ruled to have engaged in misleading and deceptive conduct by the
1993:
1988:
1902:
1851:
1683:
1576:
868:
858:
751:
662:
424:
230:
79:
2133:
1998:
1778:
743:
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916:
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started search engine advertising in
December 1999. It was not until October 2000 that the
303:
the higher the quality of the ad, the lower the cost per click is charged, and vice versa.
2093:
2047:
1983:
1978:
1866:
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announced its intent to acquire
Overture for $ 1.63 billion. Today, companies such as
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and acknowledge offering PPC services, as an alternative to AdWords and AdCenter.
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915:. Website Traffic Yahoo! Search Marketing (formerly Overture). Archived from
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Customers are 50% more likely to purchase something after clicking a paid ad.
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Overture and Google: Internet Pay Per Click (PPC) Advertising
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Sponsored search: An overview of the concept, history, and technology
887:"Keyword Matching Options Article: Keyword Matching Options Bing Ads"
543:
524:
295:
287:
732:"Online advertising: Pay-per-view versus pay-per-click — A comment"
501:), presented a pay per click search engine proof-of-concept to the
233:, website owner, or a network of websites) when the ad is clicked.
1427:
1285:
1219:"Click Bots and Fake Traffic Cost Online Advertisers $ 35 Billion"
953:, International Journal of Electronic Business. 6(2), 114 – 131. (
481:
websites, and it was developed by Ark
Interface II, a division of
1049:"Yahoo! and Overture Extend Pay-for-Performance Search Agreement"
1952:
1841:
1744:
1724:
1457:
1340:
1079:
1026:
594:
Click bots and fake traffic cost online advertisers $ 35 Billion
350:, is used to assess the cost-effectiveness and profitability of
1289:
1263:"FBI and Google dismantle multi-million dollar ad fraud scheme"
611:. The ads had been shown by Google in response to a search for
571:
launched their combined effort against Google, and
Microsoft's
1644:
999:
954:
797:
707:"Get More Customers with Pay Per Click (PPC) Ads - Google Ads"
371:
Cost-per-click ($ ) = Advertising cost ($ ) / Ads clicked (#)
591:
57.5% of users don't recognize paid ads when they see them.
558:
Among PPC providers, Google Ads (formerly Google AdWords),
854:
Pay-per-click search engine marketing : an hour a day
419:
When the ad spot is part of a search engine results page (
323:, or anywhere a web developer chooses on a content site.
229:, in which an advertiser pays a publisher (typically a
1169:"SEO vs PPC – Time for a Fight! [Infographic]"
1021:
Stefanie Olsen and Gwendolyn Mariano (April 5, 2002).
841:
Google AdSense Help Center, Accessed November 17, 2014
588:
SMEs spend $ 108,000 to $ 120,000 annually on PPC ads.
248:). With search engines, advertisers typically bid on
2061:
1966:
1901:
1894:
1762:
1717:
1671:
1643:
1600:
1569:
1518:
1497:
1490:
1354:
326:The PPC advertising model is open to abuse through
857:. Joseph Kerschbaum. Indianapolis, Ind.: Wiley.
605:Australian Competition & Consumer Commission
775:
773:
396:The flat-rate model is particularly common on
1301:
195:
8:
967:Planet Oasis gives web sites promotion clout
359:and the resulting total pay-per-click cost.
315:, and appear adjacent to, above, or beneath
940:Google AdWords Help, Accessed May 18, 2012,
1898:
1766:
1494:
1360:
1308:
1294:
1286:
1076:"Yahoo to buy Overture for $ 1.63 billion"
380:(e.g., to purchase or not), location (for
202:
188:
36:
1023:"Overture sues Google over search patent"
975:July 8, 1996, Retrieved December 5, 2012,
736:Journal of Revenue and Pricing Management
1121:"Yahoo and Microsoft Join Search Forces"
698:
542:Although GoTo.com started PPC in 1998,
176:
153:
125:
92:
44:
1051:. Yahoo! Press Release. Archived from
949:Jansen, B. J., and Mullen, T. (2008)
779:"Customers Now", David Szetela, 2009.
7:
839:How Google prevents invalid activity
1100:Rosenberg, Eric (5 February 2015).
489:In February 1998 Jeffrey Brewer of
321:search engine results pages (SERPs)
1145:Crum, Chris (September 10, 2012).
815:"Using data to help prevent fraud"
25:
1183:"How Much Does PPC Cost in 2022?"
1119:Singel, Ryan (18 February 2010).
794:The Pennsylvania State University
1074:Stefanie Olsen (July 14, 2003).
60:Local search engine optimisation
792:. IEEE Computer. 40(7), 85-86.
225:model used to drive traffic to
1261:England, Rachel (2018-11-28).
1047:Yahoo! Inc. (April 25, 2002).
1:
730:Fjell, Kenneth (2009-03-01).
533:cost-per-thousand impressions
497:(later Overture, now part of
1679:Inter-process communication
439:In addition to ad spots on
398:comparison shopping engines
2175:
2154:Search engine optimization
2139:Online advertising methods
1346:Web syndication technology
688:Search engine optimization
626:
342:Pay-per-click, along with
55:Search engine optimization
29:
27:Internet advertising model
1832:
1769:
1363:
1323:
1237:australiancontractlaw.com
1002:) Accessed June 12, 2007,
1102:"How Google Makes Money"
673:Pay-per-call advertising
1277:"About Invalid Traffic"
909:Yahoo! Search Marketing
851:Szetela, David (2010).
683:Search engine marketing
617:High Court of Australia
564:Yahoo! Search Marketing
447:and the ads on them as
94:Search engine marketing
996:London Business School
258:display advertisements
141:Contextual advertising
65:Social media marketing
2149:Contexts for auctions
788:Jansen, B. J. (2007)
246:Microsoft Advertising
2144:Internet terminology
2129:Compensation methods
2079:Glossary of blogging
2043:Social communication
1233:"Google Inc vs ACCC"
969:, Bradley Johnson,
919:on February 20, 2010
811:Shuman Ghosemajumder
223:internet advertising
146:Behavioral targeting
30:For other uses, see
938:The cost of AdWords
748:10.1057/rpm.2008.39
410:advertising network
357:click through rates
344:cost per impression
155:Affiliate marketing
127:Display advertising
108:Cost per impression
40:Part of a series on
2104:Uses of podcasting
1842:Collaborative blog
1837:Anonymous blogging
1730:RSS Advisory Board
1398:Electronic journal
1207:. 18 January 2018.
990:2009-03-25 at the
913:"Sponsored Search"
813:(March 18, 2008).
668:Opportunity to see
658:Click-through rate
560:Microsoft adCenter
455:click-through rate
352:internet marketing
178:Mobile advertising
85:Native advertising
75:Referral marketing
46:Internet marketing
2159:Digital marketing
2116:
2115:
2112:
2111:
1903:Alternative media
1890:
1889:
1852:Instant messaging
1758:
1757:
1486:
1485:
1221:. 3 October 2022.
864:978-0-470-91719-0
663:Digital marketing
425:real-time-bidding
244:Advertising, and
212:
211:
80:Content marketing
16:(Redirected from
2166:
1899:
1779:Enhanced podcast
1767:
1495:
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1296:
1287:
1281:
1280:
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1267:
1266:
1258:
1252:
1251:
1249:
1248:
1239:. Archived from
1229:
1223:
1222:
1215:
1209:
1208:
1197:
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1190:
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1173:
1172:
1165:
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1109:
1106:investopedia.com
1097:
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924:
911:(May 18, 2010).
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894:
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842:
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780:
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767:
742:(2–3): 200–206.
727:
721:
720:
718:
717:
703:
493:, a 25-employee
260:, also known as
204:
197:
190:
113:Search analytics
37:
21:
2174:
2173:
2169:
2168:
2167:
2165:
2164:
2163:
2119:
2118:
2117:
2108:
2094:Slashdot effect
2057:
2048:Social software
1962:
1886:
1867:Mobile blogging
1828:
1754:
1713:
1709:Streaming media
1667:
1639:
1596:
1592:Synchronization
1565:
1514:
1510:Feed URI scheme
1482:
1378:Classical music
1350:
1319:
1317:Web syndication
1314:
1284:
1275:
1274:
1270:
1260:
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1246:
1244:
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1230:
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1171:. 20 June 2012.
1167:
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1056:
1055:on June 9, 2007
1046:
1045:
1041:
1031:
1029:
1020:
1019:
1015:
1010:
1006:
992:Wayback Machine
983:
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972:Advertising Age
965:
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920:
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613:Honda Australia
601:
582:
495:startup company
478:
459:conversion rate
445:content network
406:
390:
365:
340:
317:organic results
309:sponsored links
272:Social networks
250:keyword phrases
208:
169:Revenue sharing
164:Cost per action
70:Email marketing
35:
28:
23:
22:
15:
12:
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2074:Escribitionist
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2058:
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2055:
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2045:
2040:
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2038:
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2002:
2001:
1996:
1991:
1986:
1981:
1970:
1968:
1964:
1963:
1961:
1960:
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1943:Search engines
1940:
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1913:
1907:
1905:
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1888:
1887:
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1884:
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1877:Video blogging
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1752:
1747:
1742:
1740:World Wide Web
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2089:Posting style
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404:Bid-based PPC
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388:Flat-rate PPC
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18:Pay per click
2083:
1938:Online diary
1882:Motovlogging
1857:Liveblogging
1804:Slidecasting
1704:RSS tracking
1625:Product feed
1373:Bloggernacle
1271:
1256:
1245:. Retrieved
1241:the original
1236:
1227:
1213:
1204:
1195:
1186:
1177:
1163:
1153:26 September
1151:. Retrieved
1149:. WebProNews
1140:
1130:26 September
1128:. Retrieved
1124:
1114:
1105:
1095:
1083:. Retrieved
1069:
1057:. Retrieved
1053:the original
1042:
1030:. Retrieved
1016:
1007:
980:
970:
962:
945:
933:
921:. Retrieved
917:the original
903:
891:. Retrieved
889:. Google Inc
881:
853:
846:
834:
822:. Retrieved
805:
784:
739:
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725:
714:. Retrieved
710:
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632:
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541:
523:
488:
483:Packard Bell
479:
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366:
363:Construction
341:
325:
312:
308:
305:
270:
255:
235:
218:
214:
213:
102:
2069:Blogosphere
1974:Aggregation
1794:Peercasting
1694:Referencing
1388:Dream diary
819:Google Blog
790:Click fraud
653:Advertising
629:Click fraud
623:Click fraud
328:click fraud
136:Ad blocking
2123:Categories
1967:Micromedia
1921:Journalism
1824:Web series
1799:Screencast
1784:Mobilecast
1699:RSS editor
1582:Geotagging
1546:Reblogging
1505:BitTorrent
1491:Technology
1336:Podcasting
1247:2015-07-02
893:26 January
716:2021-05-04
694:References
553:ValueClick
519:Bill Gross
507:California
457:(CTR) and
346:(CPM) and
262:banner ads
238:Google Ads
2053:Web Slice
1911:Carnivals
1872:Spam blog
1862:Microblog
1847:Columnist
1809:Videocast
1620:Photofeed
1615:Data feed
1610:Atom feed
1570:Mechanism
1561:Trackback
1531:Permalink
1458:Political
1448:Photoblog
1383:Corporate
1125:Wired.com
873:659561779
764:153731290
756:1476-6930
569:Microsoft
292:Pinterest
280:Instagram
1953:Software
1948:Sideblog
1931:Database
1814:Webcomic
1718:Standard
1684:Livemark
1635:Web feed
1630:RDF feed
1602:Memetics
1556:Rollback
1541:Pingback
1526:Linkback
1519:Features
1341:Vlogging
1331:Blogging
988:Archived
647:See also
642:clicks".
609:Carsales
517:founder
515:Goto.com
491:Goto.com
284:LinkedIn
276:Facebook
274:such as
227:websites
221:) is an
2134:Pricing
2062:Related
2021:Hashtag
2011:AtomPub
1926:Citizen
1916:Fiction
1819:Webtoon
1551:Refback
1498:General
1478:Warblog
1468:Reverse
1463:Project
1433:Lifelog
1413:Fashion
1393:Edublog
1327:History
1085:May 18,
1059:May 18,
1032:Jan 28,
923:May 18,
824:May 18,
529:AdWords
511:Idealab
476:History
414:keyword
338:Purpose
300:Twitter
2026:NewsML
1994:Search
1989:Review
1735:Usenet
1689:Mashup
1672:Social
1663:RSS TV
1653:GeoRSS
1577:Thread
1473:Travel
1453:Police
1423:Health
1408:Family
871:
861:
762:
754:
544:Yahoo!
525:Google
499:Yahoo!
378:intent
298:, and
296:TikTok
288:Reddit
242:Amazon
1999:Video
1895:Media
1356:Types
1187:WebFX
760:S2CID
599:Legal
441:SERPs
429:SERPs
2006:Atom
1984:Poll
1979:News
1763:Form
1750:XOXO
1745:XBEL
1725:OPML
1658:MRSS
1536:Ping
1443:News
1418:Food
1403:Fake
1205:VARN
1155:2012
1132:2012
1087:2010
1080:CNET
1061:2010
1034:2011
1027:CNET
925:2010
895:2013
869:OCLC
859:ISBN
826:2010
752:ISSN
573:Bing
562:and
513:and
421:SERP
256:PPC
1645:RSS
1438:MP3
1428:Law
1368:Art
1000:PDF
998:, (
955:PDF
798:PDF
796:. (
744:doi
535:or
503:TED
319:on
311:or
268:).
266:CPM
219:PPC
32:PPC
2125::
2036:G2
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