What is the Meaning Of Pay per Click

PPC stands for pay per click.

PPC is a web advertising model which is used to drive traffic to the websites in which an advertiser pays a publisher when the ad is clicked,PPC affiliate a first-tier with search engines(i.e. Google Ads or Bing ads) where amount is paid on the basis of bidding of a particular keyword phrase and its target market done by its advertiser.  While content sites  paid a fixed amount of charge except bidding system. PPC “displays” advertisement also known as banner ads are also shown on the websites with the relevant content they agreed with to show ads and are typically not pay-perclick advertising. Moreover, Some of the social media platforms like linkedin, facebook,twitter hence adopted the model of ppc advertising.

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AIM

PPC (i.e. Pay per click) along with CPM ( Cost per impression), are basically use to estimate the cost-effectiveness and aptness(i.e.profitabilty) of online marketing. CPM will help your brand to reach vastly on the google and their connected sites. Whereas,  the advertiser will only pay for 1000 impressions of ad.

Pay per click has an advantage over cost per impression that it states the information about how effective the ad was. Clicks are a way to dimension attention & interest: If the main aim of an ad is to generate a click or more distinctively to drive traffic to a destination, then Pay per click is the preferable cadent (i.e. metric).

Once the number of web impressions is achieved, the quality and placements of the advertisement will affect the click through rates(CTR)  and the resulting pay-per-click.

Formula to calculate cost per click

We can calculated cost per click by dividing the advertisement cost , number of clicks generated by an advertisement.

The basic formula to calculate CPC : Cost-per-click ($) = Advertising cost ($) / Ads clicked(#)

There are mainly two visuals for determining pay-per-click: flat-rate and bid-based. In both cases advertiser must consider the potential value of a click from a given source.

Basically, this value is based on the type of individual ,  which the advertiser is expecting to receive as a visitor to his or her website, and what the advertiser can gain from the visit, usually revenue, both in the short term as well as long term goals.

Main form of advertising targeting is key, and the measures that often play into PPC campaigns include the target’s interest ( which can be defined by the keyword entered into the search box or the content of a page they are browsing for.) , intent(i.e. purchase or not) , location(i.e. geographical targeting), and the day & time they are browsing.

Discussion of Flat- Rate and Bid- based Pay Per Click

Flat-Based PPC

Flat- based system states that the advertiser and publisher will agree on fixed amount of charge will be  paid on each click. The publisher’s have a rate card that lists pay-per click (PPC) within different areas of their websites and network. Amounts are often related to the content on pages, with content that attracts more valuable visitors having a higher PPC than content that attracts less valuable visitors.

Bid-Based Pay Per Click

The sponsor  signs a contract that allows them to emulate against other sponsors in a private auction hosted by an publisher.  Each advertiser informs the host of the maximum amoun that he/she willing to pay for a given ad. The Ad shot is a part of search engine result page, the winner is determine when  the automated auction is taking place whenever the search for the keyword occurs. As per the keyword searches, Geo locations, day and night time are compareing to determine the winner. The bid and Quality scores used to give an ad rank to the advertiser.

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Pay – per call advertising

Pay per call advertising

refers to an advertising model , where the advertiser is paying rate on the basis of a number of telephone calls made by viewers of the ad.  Pay- per call provider calls charged per call, per impression and per conversions.

Pay-per click is similar to PPC advertising, but it persuades the number of viewers who made a telephonic call instead of viewing an ad from an external website.

As the duration of interactions and the probability of fraud through call reduces these might be the factors that will increase Pay per call pricing and increasing its effectiveness.

Hope you have read this article and get knowledge about Pay per click advertising. If you want to connect with us for more updates and articles, subscribe to our website or you may follow us on Facebook , Instagram for latest updates. Do like, share & subscribe with your colleagues.

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