Pay Per Click (PPC) is an internet marketing model. It is an online advertising model which works effectively and efficiently. Pay Per Click is also known as CPC, Cost Per Click. To put it in the simplest of terms, the author (maker) of a site pays the publisher of the site a small amount of money every time a visitor is directed to their site through the publishing site. The reason this model is referred to as effective is that it is used by giants of the internet. Google, Microsoft Bing and Facebook are some of the prominent examples of the sites using PPC. A PPC ad can be spotted easily too. Every time the publishing site detects a keyword in their search query, the results throw up these sites at the top of their search results. They are labeled right under the result, next to the site address as either ‘ad’, in the case of Google and Bing or as ‘sponsored’ in the case of Facebook and YouTube.
Following are the important concepts to be grasped before one invests in the PPC model:
- Ad Words: The first step in using the PPC model is selecting an AdWord. The AdWord is what brings in the buyers. Hence, it should be relevant to the product the site is selling. It should include the items that searched for the most. Adding AdWords to the list is another successful trick in winning more traffic. The site should constantly analyze and adapt popular AdWords to their list for greater success.
- Growth: PPC is taken up by the companies who want to expand their customer base and know their audience. Only when the company knows their customer base is when they can react and respond to the queries made by them which helps the business to flourish.
- The Bid: One of the most important factors in the PPC model is the bid. The spot at which the ad will pop-up is a very important factor in PPC and that is determined through the bid, that is, the cost the author site is willing to pay combined with the quality of the page of the site. There are two kinds of bidding systems:
- i) Flat-Rate Bidding System: Under this system the author and the publishing site, both agree on a fixed rate to be paid for the ad to show up.
- ii) Bid-Based System: As the name suggests, this is more of an auction sort of bidding system. The author site has to compete with their competitor sites for a better spot. The Bid-Based system keeps tracks of the quality score, where the quality score is determined by the relevance of the site and the users’ experience and then assigns them the spot.
It largely depends on the company and their products when it comes to the ways in which they want to advertise their products. PPC is recently experiencing a boom as the world is going digital and if this model caters to a company’s needs, they should definitely opt for it.
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