Basics of Pay Per Click: An Advertising Model

 

In this computer world, online business is growing rapidly and has been adopted by many business owners to promote their business. Internet Advertising is one of the most common forms of marketing in these days to promote brands, in which advertisers put their commercials on popular websites or any other relevant website.

 

PPC (Pay Per Click) is an internet advertising scheme used on websites where advertisers pay their host only when customer clicks their advertisement. PPC Advertising is the placement of ad on the search results page for a specific keyword. Every time a user clicks on the ad, advertiser pays to their host, that is why it is called Pay Per Click. Host sites typically charge a fixed price per click from advertisers, based on the going rate for the respective keyword (based on its popularity).

 

The most popular PPC Search Engine is Google and their PPC advertising program is Google Adwords. A large number of other search engines also offer PPC Advertising. When a keyword query matches an advertiser’s keyword list, the PPC Search Engine displays the keyword relevant site and that site displays the ad relevant to that keyword.

 

PPC Advertising is of two types:

  • Flat Rate PPC: In this, the advertiser pays to the host-site a fixed amount for each click for his advertisement. This PPC Model is usually adopted by Shopping Engines, which typically publish rate cards. Generally these rates are minimal and advertiser can pay more for greater appearance (aka impressions). These sites are classified into different categories according to their services or products, for attracting more advertisers.
  • Bid Based PPC: In this model, the advertiser bids for purchasing an ad spot on the publisher’s website with other advertisers in an auction by publisher. The advertisers inform publisher in advance the maximum amount of money they are willing to pay for a given ad spot by using online tools. The bidder (advertiser), whose amount is maximum, succeeds in getting the ad spot on publisher’s website. Every time the advertiser demands to publish the ad on host website, he goes through the bid process.

 

If you decide to give PPC advertising a try, my advice is that the most typical thing to do is to choose the best host (most relevant to your requirements), for advertising. Best of luck!

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