Pay per click, get paid per click!
posted on 16 January 2012 | posted in
Uncategorised
Pay per click, also known as PPC, is a type of internet advertising model which allows websites to direct more traffic to their website. How this works is the advertisers pay the website owners and publishers every time their ad is clicked. Search engines use this model by having the advertisers vote on which specific keywords and phrases are related to the market they are intending on reaching. This market is known as their “target market”. In order for advertisers and websites to reach their target market they work together with other websites which might attract a certain crowd of people and then publish their ad on that site.
There are two different types of Pay per click advertising, the first one is the flat rate pay per click and the other is the bid based pay per click. The flat rate pay per click model is where the advertiser and the website owner or publisher agree upon a fixed, set amount of money that will be paid per click of the ad. The average amount paid per click can be expected to be somewhere around $1.24, this amount was verified as the average of payouts from a research study conducted in 2010.
The second type of pay per click advertising, bid based pay per click, is where the advertiser signs a contract which allows all other selected advertisers to compete in a private auction hosted by an adcenter management for the determined set amount to be paid per click. After all the bids for the keywords and phrases that represent the searchers location, time of day, and time of the search, the results are all compared and a winner is then determined. If there are multiple winners and or there Is a tie, which usually happens, then they’re then selected based on their original bid. After all competing advertisement’s bid rate have been determined they will then be numbered on the search engine site based on their rank. Meaning that the winners will show up on top, because they pay more, and the losers will be located further down on the page.
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