Be the first to like this
Pay-per-click (PPC) is an internet advertising model used to direct traffic to websites, in which advertisers pay the publisher (typically a website owner) when the ad is clicked. It is defined simply as “the amount spent to get an advertisement clicked.”
With search engines, advertisers typically bid on keyword phrases relevant to their target market. Content sites commonly charge a fixed price per click rather than use a bidding system. PPC "display" advertisements, also known as "banner" ads, are shown on web sites or search engine results with related content that have agreed to show ads.
In contrast to the generalized portal, which seeks to drive a high volume of traffic to one site, PPC implements the so-called affiliate model, which provides purchase opportunities wherever people may be surfing. It does this by offering financial incentives (in the form of a percentage of revenue) to affiliated partner sites. The affiliates provide purchase-point click-through to the merchant. It is a pay-for-performance model: If an affiliate does not generate sales, it represents no cost to the merchant. Variations include banner exchange, pay-per-click, and revenue sharing programs.
For example, if your site is about software company. You are willing to spend $0.40 for each person who visits your site from the pay per click advertiser, if no one bids more than you do, then your site is listed first in the search results. If someone bids more than you do, then your site moves down in the search results.
Generally, the top 2-4 bids at most pay per click companies are prominently placed on another search results page. Now, take another look at the Yahoo page. The top bidders, known as ‘sponsor matches’ are prominently featured at the top of the page. There are some more ads on the right hand side of the page, these are from Overture, even through they have a Google AdWords type appearance. You will see there are also more sponsor matches at the bottom of the page, which are not prominently featured.
While these other bids are not prominently featured, they do generate visitors and revenue. Because they are not the top bidders, they often have much lower bids than the top few placements, which can generate a higher pay per click ROI (return on investment).
If you click on the ‘next’ results at the bottom of the page, you will see more advertisements on the second page. Often, being featured on the top of the second page generates more exposure compared to the listings the bottom of the first page. We keep abreast of how many ads are displayed on a page, and maximize your exposure by moving your ads to where it receives the highest visibility and click through compared to how much you wish to spend per click.