Why Pay Per Click (PPC) Marketing?
Pay per click marketing is also known as PPC, PPC marketing and cost per click marketing. It is a method of online advertising that business owners use to help direct visitors and traffic to their websites. The business owners or advertisers pay the publisher of the ad every time their ad is clicked on by an online visitor. The term can be defined simply as the amount of money that is paid so that an ad is clicked.
These advertisers usually bid on keywords that are commonly searched for in search engines. These keywords or keyword phrases are terms that are relevant to their industry. Many content sites charge a fixed rate for every click whereas other types of sites use a bidding system. These types of ads typically appear as banner ads on websites and search engine result pages.
Instead of all of the ads being directed to one general portal or site, pay per click ads are created on the affiliate model. This means that partners affiliated with the company are given a percentage of any sales that results from a visitor clicking on the ad and making a purchase. The affiliate provides customers to click directly to the merchant through pay per click marketing.
This type of marketing is known as pay for performance and it is variation of PPC along with banner exchanges and revenue sharing programs.
Why Advertisers Choose Pay Per Click Marketing
Pay per click is often used by advertisers to determine how cost effective and profitable this particular form of internet marketing is for the advertiser. These clicks help determine how much interest and attention the ad receives from visitors.
An ad that does not cost a lot and does not receive a lot of attention will have a low cost for each impression, but a high cost for each click.
The Two Main Models For Pay Per Click
There are two models that are used in pay per click marketing. One of these models is the flat rate and the second model is the bid based.
A flat rate model for PPC occurs when a publisher and an advertiser both agree on a fixed or flat rate that each click will cost. Many times the publisher will have a list of rates for each area of the network or each industry. These rates often vary based on the content that is located on the pages of the website. Content pages that are considered relevant will higher fixed rate PPC ads placed them, while content that generates little interest will receive fewer visitors.
Bid based PPC allows advertisers to compete with other advertisers who are in the same industry. The advertisers compete through an auction or through an advertising network. An advertiser will then inform the publisher the maximum amount they are willing to pay to secure an ad spot.
The advertisers pay every time their ad is clicked on. The amount that they pay is based on the initial amount bid.
Pay per click marketing is one of the most effective forms of marketing for advertisers. Even though it is more expensive to launch a PPC campaign, advertisers are able to receive real time results from their marketing efforts almost immediately.