If I, for example, click a google ad for a local car dealership; does Google record that click and charge a specific amount to the advertiser? Or is pricing calculated based on other factors like time spent on the site after ad clicks?
I’m very curious about the microeconomics of online advertising, like how much is getting spent to expose me to certain ads. But all information I’ve found so far is pretty vague
In: Technology
Online advertisements are pretty tricky.
My understanding is that Google holds a bit of an auction to fill available as spaces and gives it to the highest paying advertiser.
Google and websites earn a couple cents for every thousand ads they show. Video ads pay better than static images.
Google themselves don’t keep track of when a user clicks an ad. It’s the advertiser, who may pay Google and the website a royalty for the user clicking on the ad. They would be keeping track of clicks through a monitored link that logs the amount of times any particular ad is clicked.
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