What Is PPC?

Pay Per Click

In the pay-per-click (PPC) internet advertising model, a publisher receives payment from an advertiser each time a link in the advertisement is “clicked” on. PPC can also be referred to as the cost-per-click (CPC) model. Social networks like Facebook and search engines like Google are the main providers of the pay-per-click business. The most widely used PPC advertising platforms are Google Ads, Facebook Ads, and Twitter Ads.

How the PPC Model Works

The main foundation of the pay-per-click concept is keywords. For instance, internet advertisements, sometimes referred to as sponsored links, only show up in search results when a user enters a phrase associated with the offered good or service. As a result, businesses that use pay-per-click advertising models investigate and evaluate the keywords that are most relevant to their offerings. Investing in pertinent keywords can increase click-through rates and, ultimately, earnings.

PPC models are thought to be advantageous for publishers and advertisers alike. The concept is beneficial to advertisers because it gives them a chance to promote goods or services to a targeted audience that is actively looking for relevant material.

Furthermore, an advertiser can save a significant amount of money with a well-designed PPC campaign because each visit (click) from a potential client is worth more than the click-through rate that publishers receive.

The pay-per-click business model serves as publishers’ main source of income. Consider Google and Facebook, two companies that offer their users free services (free social networking and web searches). Online businesses can use online advertising, especially the PPC model, to monetise their free offerings.

How the PPC Model Works

Pay-per-click advertising rates are typically calculated using either the bid-based or flat-rate models.

1. The model with a fixed rate
Advertisers that use the flat rate pay-per-click model give publishers a set amount of money for each click. Typically, publishers maintain a list of various PPC prices for various sections of their website. Keep in mind that publishers are typically amenable to price discussions. If a high-value or long-term contract is offered by an advertising, the publisher is quite likely to reduce the set price.

2. Model based on bids
Each advertiser submits a bid under the bid-based approach, indicating the highest price they are willing to pay for an advertising place. After then, a publisher uses automated technologies to conduct an auction. Whenever a visitor activates the advertisement place, an auction is held.