Pay Per Click
Pay per click is an internet marketing model that is used to drive traffic to online companies and websites. The advertisers pay the host, when their ads are clicked on. The advertiser’s bid on the keyword phrases that are relevant to their target market, using the search engines. Content based sites usually charge a fixed price per click rather than using the bid system.
The pay per click (PPC) uses the method called affiliate model that allows people to purchase, whenever they surf. They do this, by offering financial incentives to their affiliate partner sites that are paying them a percentage of their revenue. The affiliate is paid, only when a purchase is made through a click. If the affiliate does not generate any sales then, it represents no cost to the owner. This is the pay for performance model. This model is well suited for the web that explains its popularity. The variations include pay per click, banner exchange and revenue sharing programs.
Websites that make use of the Pay per Click ads, display an advertisement whenever, the keyword query matches with the keyword list of the advertiser. On the other hand, in a content based site, the ad is displayed when the site displays a relevant content. These advertisements are called sponsored ads or links. These appear on the search engine result pages, above or next to the organic results. Sometimes, they are placed anywhere on the site by the web developer.
There are two types of Pay per Click that determines the cost are the flat rate and the bid based. In both the method the advertiser must evaluate the potential value of the click from the source. This value mainly depends on the type of individual, who visits the website and thereby, the advertiser gains from it. The advertisers make revenue for a short term or a long term depending upon the visitors. Therefore, pay per click is used by lots of advertisers of these days to market their company name both in local online marketing and the international.