What is Pay-Per-Click (PPC)?
In the pay-per-click (PPC) model of internet advertising, a publisher gets compensated each time an advertisement link is “clicked” on. PPC is sometimes referred to as the cost-per-click (CPC) model.
Search engines like Google and social media platforms are the main providers of the pay-per-click business (e.g., Facebook). The most used PPC ad platforms are Google Ads, Facebook Ads, and Twitter Ads.
The pay-per-click business model offers publishers their main source of income. Consider the free services that Google and Facebook offer to its users (free web searches and social networking). Online advertising, specifically the PPC model, allows online businesses to make money off of their free offerings.
Fundamentals of PPC
The both flat-rate model and the bid-based model are frequently employed to calculate pay-per-click advertising prices.
1. Bid Based Model – Each advertiser submits a bid using a maximum amount of money they are ready to pay for an advertisement place in the bid-based model. The publisher then uses automated systems to conduct an auction. When a visitor activates the advertisement, an auction is launched.
2. Flat-Rate Model – a defined payment from an advertiser for each click under the flat rate pay-per-click model. Publishers often maintain a list of various PPC prices that are applicable to various parts of their website. Keep in mind that publishers are frequently sensitive to price discussions. If an advertiser provides a long or valuable contract, a publisher is extremely inclined to reduce the set price.
What is the benefits of PPC?
1. You can drive traffic to your website instantly
From the time you start learning about PPC marketing until your first PPC ads actually bring visitors to your website, it only takes a few hours.
Contrast that with any “free” alternatives like email marketing, social media, or SEO. These can take months or years to begin generating any increased traffic. By paying at each stop, you may save endless hours.
2. You can target potential customers really well
You usually only want to pay for clicks from people who are likely to buy from you, and all PPC platforms allow you to do exactly that.
How does PPC work?
In the pay per click (PPC) model of digital advertising, an advertiser is charged a set or bid fee each time a user clicks on one of their adverts and visits their website. A pay-per-click campaign’s goal is to “purchase visitors” for a certain website.
The objective is to promote a specific type of user activity, like signing up or making a purchase.
PPM (payment per thousand)- In this case, the advertiser pays a certain sum for each thousand impressions, or each time the user sees the advertising a thousand times. Remember that this model makes it impossible to anticipate how many clicks each additional thousand impressions would produce, thus you cannot tell how much you will pay for each visit.
PPA (payment for acquisition)- In this instance, the advertiser receives payment each time a user completes a certain task, like downloading an application. As a result, the connection between cost and goals is even clear than it was in the PPC model.