P4P
Online Advertising
P4P
P4P is an abbreviation of the term "Pay For Performance". The
concept was invented at Overture (now
Yahoo! Search Marketing) and later adopted by their competitors,
most famously
Google's
AdWords.
Under the model advertisers bid on the rights to present a search result
for a specific search terms in an open auction. When someone enters a
search term that has been bid on, the results from the auction on that
search term are presented, ranked from highest bid to lowest.
When this idea was first introduced, there was a lot of controversy. Many
felt that the results would be irrelevant, but the auction model has proven to
be quite effective at producing relevant results for searches where you want to
buy something. P4P is now seen as the most efficient and effective way to
monetize search engines.
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