What is Pay Per Click?

Pay Search Marketing – What is Pay Per Click?

Pay Per Click AdvertisingPPC or Pay Per Click is a form of advertising that directs traffic to your website through strategic ad placement. It’s quick and easy and doesn’t require a lot of skill to utilize. Companies will pay advertisers such as Google, Bing or Yahoo to run an ad. When this ad is clicked on, it will direct visitors to your site and if they purchase something, you get paid. It’s that simple. No master techniques are required.

Advertisers bid on the keywords and phrases that work best for their niches. These ads are then posted on relevant sites and when they are clicked upon the ad pays out at the pre set prices negotiated by the advertisers.

Another form of Pay per click is affiliate marketing. When a site or blog discusses specific products or services, they’re provided a link that sells said item. If someone gets there via that link, the site that provided the link gets a percentage of the sales commission if a sale is made.

Pay per click ads also can be referred as sponsored links or sponsored ads. They can be seen in various locations on the page. They may be at the top, side or below the organic results. Web developers generally decide where these are placed in the page.

What’s The Purpose?

Pay per click is excellent at determining how cost effective the internet marketing is being done by a company. The clicks measure the visitors intention or how interested they are in a specific product or service. After a pre set number of impressions are registered, the click rates will s how where it’s best to set their ads.

Kinds Of Pay Per Click Models

There are two basic types of pay per click forms. Flat rate and bid based. Both ensure that the advertisers ad is being seen. Visitors will determine which ad to click upon. The value goes according to what kind of individual the company wants to visit the site. Advertisers will gauge what sort of click is working better and can then remove the one that isn’t working and funnel their revenue into the other one. Advertisers determine this on one time purchasers vs repeat purchasers and their relationship with the seller.Flat Rate Pay Per Click

Flat Rate Pay Per Click

An ad is considered flat rate when advertisers and publishers will agree on fixed pricing per click. Often the publisher has something to refer to as rate cards. Rate cards tell the advertiser rates per click. Amounts will vary from content attracting valuable visitors and give higher rates per click for content with less valuable visitors. Most frequently this attracts less valuable visitors.

Bid Based Pay per Click

When advertisers enter into contracts through search engines or publishing sites, they often compete against other advertisers in the field. Done via private auctions that are run through search engines or publishers the advertiser will tell the host the top dollar amount that they are willing to spend on the ad. Each auction will be fully automated from the moment that the keyword is bid upon.

Winning bids are then determined through the keyword being targeted by the searcher’s locale, day and the time of the query. All of this information works together to determine the winner. If there are multiple winners they will be placed into multiple ad spots. The positions being determined by the order of the bids and the winning spot they took. Advertisers with higher bids will show up first and then the others will be assigned their slots accordingly.

Are you confused yet? Give us a call today and let us help you understand how this is done more clearly. You deserve to talk to an expert and we can walk you through this step by step.

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