thewiki

Government Policies have an effect on most of the things that happen around the country. This is because of the nature of government policies, which are applicable to a wide range of people in the nation.

Therefore when we ask what will be the effect on PPC or Pay Per Click due to government policies, we should understand that these actually depend on what kind of policies are implemented by the government.

For Example, if the Government increases taxes on advertisements, in that case, the overall budget of the advertisers will decrease because now they have to pay more money for the advertisements on any search engine or website, in that case, the overall PPC might go down because the advertisers would want to save as much money as possible by using cheap ad placements.

This is just one scenario. Other scenarios may include that there is a favorable policy towards the Information Technology sector because of which there seems to be a more expansion and penetration of internet services in villages and into the hands of several people who initially not have services like these, in that case the profit margin of advertisers will also increase because of which they will be able to share more profits with the website owners, hence PPC will start to increase.

Similarly if due to inflation price of goods and services increases, then again PPC may increase a bit because of the raised costs or else advertisers might not get any space to place their advertisements.

Therefore, one cannot just say that PPC will be effected positively or negatively because of any policy change directly without actually observing it and this is because sentiments of the population and market also determines a lot of thing.

Most of the things in this world fluctuate in their value due to the perceived value of that thing and hence if the sentiment towards the governmental policies is positive then there can be a gradual increase in PPC as well, while if there is a perceived negative sentiment towards a government policy, then PPC can also go down a bit, but most of the times it will increase due to inflation.

You can also see this phenomenon in developed countries where PPC is rather very high, but at the same time overall purchasing power of the people have also decreased due to inflation.

As we study taxation, and economics, we get to know that there are several different factors that might decide the future of PPC and not only one, but when we are solving questions, then we are mostly working on small mathematical scenarios which may not even play out in reality.

Therefore while checking for effects on PPC due to governmental policies one should take into consideration several different things and not only basics that we have learnt like that of direct and inverse proportion, because sentiments also play a vital role in determining what may happen to PPC in reality.