PPC,
abbreviated as Pay per Click is a type of the advertising model that helps in
directing traffic to websites. It is based on the phenomenon that the amount,
spent to get an advertisement clicked or an advertiser paying depending
on the number of times the published advertisement is clicked. PPC also
called as Cost per Click is an Internet Advertising used on search engines,
advertising networks and website/blogs.
Now coming to how the PPC advertising works? As we know that
to have an advertisement listed on search engines we will have to pay for it. This
is done by the act of bidding the
keywords. Advertisers bid on the keyword phrases relevant to
their market or their business. Then whosoever bids the highest gets the
highest listed position. Besides the factors including keyword popularity and
competition from other advertisers bid prices also vary depending on the company’s
budget and the time the company is desirous of using the paid amount.
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| Pay per Click |
Some of the most prominent companies that take PPC bids
include Google
AdWords, Yahoo, Search Marketing and Microsoft adCenter.
The two models that assist in determining Cost per Click are :
Ø
Flat rate PPC:
in it the advertiser and publisher agree on a fixed amount that will be paid
for each click
Ø
Bid Based PPC: in
it a private auction is hosted by a publisher or an advertising network in
which the advertiser signs the contract to participate in the auction and
compete against other advertisers.
Legitimacy
of PPC:
This Pay per Click advertising is
not that clean, it also includes security breaches such as click frauds that
can lead to destruction in advertising budget as well as restrict positional customers
from reaching a site. In this regard the search engines help by detecting some
unusual patterns such as clicks coming from same IP address, repetitive and
duplicate clicking and the time of the clicks. But it also cannot be ignored that
click fraud harms an advertiser directly by running him out of his budget and
also some analysts have estimated that click fraud runs as high as 20 percent
for certain keywords.
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| PPC |
Future of PPC:
According to the inventor of Pay
per Click; Bill
Gross the future of PPC is in Pay per Action. And this advancement of PPC
in pay per action has eliminated the click fraud problem. In it the business
would not have to pay for the number of clicks instead it all depends on the
completion of a desired action such as, a purchase, a fill out form, a download
etc. And thus in this way the advertisers only pay for the concrete results.
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