Pay Per Click Ads....

Today I will be presenting you a more informative blog on Pay Per Click ads in Digital Marketing. What do you think the meaning of the phrase “Pay per Click”? You guessed correctly. The name says it all. PPC stands for pay-per-click, a model of internet marketing. The first known first known and documented version of a PPC was included in a web directory called Planet Oasis in 1996. Each time the ad is clicked, the advertisers have to pay a fixed fee to the publisher of the advertisement who is usually a website owner. This can be identified as a method of buying visitors to your site since a cost should be incurred each time a visitor clicks on your ad. These websites generally charge a fixed price instead of a bidding price. These PPC ads are also known as “banner ads”. The calculation of the Pay Per Click is done by dividing the advertising cost by the number of clicks generated by an advertisement.

PPC is a very popular method used by modern e marketers because it allows the advertiser to pay some amount and place an ad in a sponsored link of a search engine when a visitor types a key word or words related to that site.

The main objective of using Pay Per Click ads is to increase the web traffic towards a website. These clicks can be used as a method to measure the attention an interest of the visitors to a site. Pay Per Clicks gives an idea about how effective the advertising was because we can calculate the number of clicks on the ads. If the aim of using an ad is to generate a click, Pay Per Click ads are the best mechanism to be used. If the ad is really good it will affect the click through rates and the succeeding Pay Per Clicks.

There are two models which are being used to determine Pay Per Click. 

• Flat-rate PPC

• Bid-based PPC

Flat-rate PPC

In this model both the parties i.e. the publisher and the advertiser agree a fixed rate and that amount will be paid time each time a visitor clicks on an ad. Based on the contents of these pages the amount can differ. If the content is very valuable, the PPC is high because it attracts more valuable customers than the sites which do not have attractive content. If the contract is long term, the advertisers can negotiate and agree to a lower rate. Sometimes the core of these content sites can be paid ads.

Bid-based PPC

This is the second method to be used to determine PPC. Unlike in fixed rate PPC, publisher allows the advertisers to compete against each other in a private auction hosted by most commonly in an advertising network.

Whenever a keyword query is made and it matches the advertiser’s key word list, the websites that use PPC will display advertisements relevant to that content. Those are generally known as sponsored ads or sponsored links.

The disadvantage of PPC advertising is even though advertisers invest tons of their money in these ads, this model is not protected from fraudulent clicks i.e. software programmed to click the ads, and this will mislead the advertiser because he will consider those clicks also when calculating hits.

But you have to remember this. Proper Management is the key to the success of anything. Even though PPC generates uncountable number of clicks to your ad with poor management, you will be ended up giving nothing g for the visitors. Therefore implementation as well as the proper management is equally important.