this post was submitted on 04 Nov 2023
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What you’re describing is Cost Per Click. While still in use with some advertisers, most have shifted towards Cost Per Impression (CPM). CPM has a much lower cost per impression, (typically paid per thousand impressions) but it usually balances out because you’re not wholly reliant on clicks to generate revenue. If only 1/1000 people actually click the ad to begin with, then the cost will be the same.
The benefit to CPM is that you’re able to spread your advertising much farther, since you’re able to essentially purchase a thousand ad slots at a time, regardless of how many clicks they receive. And sites prefer it because it allows them to focus on site traffic, rather than focusing on driving users towards ads.
Of course the only people it doesn't benefit is the end consumer because instead of trying to get you to click one ad they want you to see 1000.