Disadvantages of pay-per-click advertising
TNX.net Network Contextual Pay Per Click advertising has become so popular for a reason. It offers fast results, automatic displaying of relevant ads on web-pages and payment for clicks of only interested clients. Unfortunately, these programs have some disadvantages (we counted 7 lacks). When creating our Network, we took into account every such disadvantage.
1. The main lack is click fraud. The ads are often clicked by your competition, or webmasters and it's difficult to determine those clicks, because they are natural.
2. Some keywords are very expensive: even a single click causes damage to advertisers. The auction based pricing model leads to over priced clicks. It often takes place because employees managing campaigns for large companies with mammoth advertising budgets, misuse PPC systems. Some advertisers don't control the ROI and also bring losses to others advertisers.
In TNX.net Network you can forget about overpriced clicks and click fraud - because clicks are not paid at all. We believe, that ads placed on most valuable pages should be appreciated more than clicks.
3. The third lack of contextual advertising concerns negative attitude of users to advertisements. Many users don't pay attention to similar ad blocks. Users just don't trust them as much as search results - that is why the CTR of search results is much higher, than CTR of search ads.
Ads in TNX system do not differ from the site's main content (text + direct link). And we guarantee that there is no way to block their displaying. We reach 100% of the audience.
5. Another disadvantage of context advertising is indirect links. What this means, is that when you clock on a link first you are taken to the site of advertising system, and only then redirected, to the advertiser's site. Also, the same page can display different context ads every time.
Because of that this kind of advertising does not promote the page with search engines! And the main traffic (about 80%) in the Internet goes from search engines. This is not very fair, because sites that order large amounts of advertising (including links) in the Internet usually are quality and relevant sites that tend to care about their visitors. But it's disadvantageous for the search engines to count context advertising links for ranking purposes, because this would decrease their income (plus there are some technical difficulties in counting indirect links).
Our system is free of that. We offer only direct links to the advertiser's site. The same direct link will be displayed on the same page of a participating site for a long time (from one month to a year). This provides for significant improvement of the advertiser's site rank in search engines, and a huge inflow of visitors from Google and similar search sites. And unlike unnoticeable sold links on main pages, our links are just as visible as context ads - i.e. there is guaranteed traffic of visitors through these links.
6. Another problem some pay-per-click advertising systems face is the "doorway".
I am sure at some point of time you've had to try to find something rare in search sites, like a specific software or a film. But when you click on some search results you were directed to pages with incomprehensible content and a huge number of links. When you click on these links you might end up on sites of hosting companies (while you were looking for software). This is one of the ways advertisers loose money for wasted clicks...
Our system buy out ad spaces on the best sites, and requirements for these sites are very strict: sites must have good rank and be popular. And you will not find a single link to our system on any of the doorways, and there is no point to put them there - our advertisers don't pay for clicks (including fraudulent clicks).
7. The context advertising still has this disadvantage: there is no software that can guarantee exact and correct determination of a page's subject. This is due to some peculiarities of the language: for example, the word "building" in the page's text doesn't necessary mean that this page is about construction - it could be about "building a family" or "building up your skills". However context advertising systems' AI isn't quite that well developed at the time.
We believe that manual indication of each site's category is still the most efficient way. For example, if an advertiser in our system wants its ads (links) displayed only on pages about construction, it can select category "building, improvement, renovation". When the number of sites participating in the system will reach many thousands, we will introduce more detailed separation into categories, and will start considering title and meta-tags of pages (this way pages will display the most closely related ads and the efficiency will improve even more).
At the same time we welcome advertisers' careful use of similar system to expand their coverage and advise to keep them. Because at this time there is no other way to display your ads on such a large number of sites. That's why we use these systems for promoting TNX ourselves.