What Is Pay Per Click & How Does It Work?

What is pay per click and how does it work?

A publisher is paid by the advertiser through an online model of advertising called pay per click when there is click on the link of advertisement. Search engines like Google and various social networks like Facebook offer this model. Other popular platforms supporting PPC ads are Twitter and Instagram

Significance

The effectiveness of cost and the benefits availed through internet marketing are assessed via pay per click. The campaigns of ads being run have costs driven at a very low rate without disturbing the goals of the set. The payment for only 1000 impressions on the ad are made by the advertiser in the cost per thousand. Pay per click is more advantageous than cost per impression. It is because of its ability to provide information on the effectiveness of the ads. Attention and interest are measured through the clicks. 

Pay per click is preferred when the basic goal is for the click to be generated or when the traffic needs to be taken to its required location. Click through rates are affected by the quality of the ads that also estimate the complete cost of the pay per click.

Working of PPC Model

This model works through keywords. When a keyword is searched related to the product then online ads appear easily related to the similar product. That is why the keywords are analyzed by the companies through pay per click models of advertising. Higher number of clicks can be maintained through related keywords causing a rise in profits as well. 

Both the advertisers and publishers benefit from the PPC model. The products are advertised to the people trying to find out the relevant content. A good amount of money can also be saved through an accurately designed campaign of PPC. It is because the cost paid to the publisher for each click is exceeded.

Models Of Pay Per Click

The flat-rate model or bid-based one is able to determine the rates of advertising through pay per click.

1. Flat-Rate Model

Flat Rate Pay Per Click Working Model

A fixed fee is given to the publisher by the advertiser for every click. Various rates of PPC are applied to specific website areas and that list is kept safe by the publishers. In case of price, negotiations are welcomed by the publishers. The fixed price can be lowered by the publisher when a long term of valued contract is offered by the advertiser. 

2. Bid-Based Model

Bid Based Pay Per Click Working Model

A maximum sum of money is out to bid by the advertiser for the advertisement that they are interested in paying for. Automated tools are used by the publisher for an auction. An ad spot is triggered by the visitor every time an auction is held. 

It’s the rank and not the amount that determines the winner of the auction. The money and the content quality both fall into the rank. This shows that content relevancy and bid hold equal importance. 

Conclusion

As the name says, pay per click (ppc) is an online marketing strategy where the advertiser only pays when someone clicks on his ads. It’s one of the best and to go method to advertise because you only have to pay when you get a click, not for displaying your ads. You can run your ads on different platform such as Google, Facebook, and even Bing.