RIGHT HOLDERS CASH COMMISSIONS
THE SYSTEM WORKS BY SCANNING ANYTHING UPLOADED ONTO ONLINE CONTENT – ESTIMATED OF MEDIA – AND COMPARING IT TO A DIGITAL LIBRARY OF RIGHT HOLDERS MATERIAL. WHEN A MATCH IS DISCOVERED THE RELEVANT RIGHT HOLDER IS ALERTED AND GIVEN THE OPTION OF BLOCKING THE CONTENT OR AGREEING TO ADVERTISING BEING PLACED ALONGSIDE IT. REVENUE GENERATED FROM ADVERTISING BY MEANS OF SELLING ADVERTISING SPACE.
THE REVENUE MODEL FOR ONLINE ADVERTISING IS SIMPLE. AS A PUBLISHER YOU ALLOW OTHER BUSINESSES TO USE BLOCKS OF SPACE ON YOUR CONTENT TO DISPLAY ADS. SOMETIMES YOU’LL BE PAID BASED ON HOW MANY VISITORS SEE THE AD (DISPLAY ADVERTISING) BUT MORE COMMONLY YOU’LL EARN REVENUE ONLY WHEN A VISITOR ACTUALLY CLICKS ON AN AD.
THE PAY-PER-CLICK MODEL, OFTEN SHORTENED TO PPC, IS MUCH, MUCH MORE COMMON THAN DISPLAY ADVERTISING.
THE AMOUNT EARNED PER AD CLICK VARIES. PPC NETWORKS RUN AN AUTOMATED AUCTION SYSTEM WHERE ADVERTISERS SET THE MAXIMUM AMOUNT THEY ARE WILLING TO PAY FOR EACH CLICK. GENERALLY, THIS MEANS PUBLISHERS GET BETTER PAYOUTS IN NICHES WHERE THERE ARE MORE ADVERTISERS BIDDING OR WHERE THE PROFIT MADE ON THE PRODUCT OR SERVICE JUSTIFIES THE ADVERTISER OFFERING MORE PER CLICK.