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Company, Web Designers, South Africa, Cape Town,
Johannesburg, Durban.
Pay Per Click
Pay per Click (PPC), information and definitions via
the internet:
Pay Per Click
What is Pay per Click (PPC)?
Advertisers select the words that should trigger
their ads and the maximum amount they will pay per
click. When a user searches on Google, ads for
relevant words are shown as "sponsored links" on the
right side of the screen, and sometimes above the
main search results. Click-through rates (CTR) for
the ads are about 8% for the first ad, 5% for the
second one, and 2.5% for the third one. Search
results can return from 0 to 12 ads.
The ordering of the paid-for listings depends on
other advertisers' bids (PPC) and the "quality
score" of all ads shown for a given search. The
quality score is calculated by historical
click-through rates, relevance of an advertiser's ad
text and keywords, an advertiser's account history,
and other relevance factors as determined by Google.
The quality score is also used by Google to set the
minimum bids for an advertiser's keywords. The
minimum bid takes into consideration the quality of
the landing page as well, which includes the
relevancy and originality of content, navigability,
and transparency into the nature of the business.
Though Google has released a list of full guidelines
for sites, the precise formula and meaning of
relevance and its definition is in part secret to
Google and the parameters used can change
dynamically.
The auction mechanism that determines the order of
the ads is a generalized second-price auction. This
is claimed to have the property that the
participants do not necessarily fare best when they
truthfully reveal any private information asked for
by the auction mechanism (in this case, the value of
the keyword to them, in the form of a "truthful"
bid).
Pay Per Click
More on what is Pay per Click (PPC):
Pay per click (PPC) is an Internet advertising model
used to direct traffic to websites, where
advertisers pay the hosting service when the ad is
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.
Cost per click (CPC) is the sum paid by an
advertiser to search engines and other Internet
publishers for a single click on their
advertisement, which directs one visitor to the
advertiser's website.
In contrast to the generalized portal, which seeks
to drive a high volume of traffic to one site, Pay
per Click implements the so-called affiliate model
that 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.
Websites that utilize Pay per Click ads will display
an advertisement when a keyword query matches an
advertiser's keyword list, or when a content site
displays relevant content. Such advertisements are
called sponsored links or sponsored ads, and appear
adjacent to or above organic results on search
engine results pages, or anywhere a web developer
chooses on a content site.
Among Pay per Click providers, three operate under a
bid-based model. Cost per click (CPC) varies
depending on the search engine and the level of
competition for a particular keyword.
The Pay per Click advertising model is open to abuse
through click fraud, although Google and others have
implemented automated systems to guard against
abusive clicks by competitors or corrupt web
developers.
Pay Per Click
More on what is Pay per Click (PPC):
Pay per Click (also known as Pay per Ranking, Pay
per Placement, Pay per Position or Cost per Click)
enables you to list your site at the top of search
engine results by advertising on keywords that best
describe your product or service. It's a dynamic
marketplace - the higher you bid, the higher your
advertisement will be displayed in the list.
You pay only when a searcher clicks on your listing
and connects to your site. You don't pay to list;
you only pay for clicks or click throughs. This way
you only pay for the traffic to your site; there are
no other hidden costs.
Pay per Click is not only available on search
engines. Publishers can also include Pay per Click
advertisements on their sites. For example, we use
Google's Pay per Click Adsense product as you can
see in the left-hand column.
Different models of Pay per Click (PPC):
Pay Per Click
Flat-rate Pay per Click (PPC):
In the flat-rate Pay per Click model, the advertiser
and publisher agree upon a fixed amount that will be
paid for each click. In many cases the publisher has
a rate card that lists the CPC within different
areas of their website or network. These various
amounts are often related to the content on pages,
with content that generally attracts more valuable
visitors having a higher CPC than content that
attracts less valuable visitors. However, in many
cases advertisers can negotiate lower rates,
especially when committing to a long-term or
high-value contract.
The flat-rate Pay per Click model is particularly
common to comparison shopping engines, which
typically publish rate cards. However, these rates
are sometimes minimal, and advertisers can pay more
for greater visibility. These sites are usually
neatly compartmentalized into product or service
categories, allowing a high degree of targeting by
advertisers. In many cases, the entire core content
of these sites is paid ads.
Pay Per Click
Bid-based Pay per Click (PPC):
In the bid-based Pay per Click model, the advertiser
signs a contract that allows them to compete against
other advertisers in a private auction hosted by a
publisher or, more commonly, an advertising network.
Each advertiser informs the host of the maximum
amount that he or she is willing to pay for a given
ad spot (often based on a keyword), usually using
online tools to do so. The auction plays out in an
automated fashion every time a visitor triggers the
ad spot.
When the ad spot is part of a search engine results
page (SERP), the automated auction takes place
whenever a search for the keyword that is being bid
upon occurs. All bids for the keyword that target
the searcher's geo-location, the day and time of the
search, etc. are then compared and the winner
determined.
In situations where there are multiple ad spots, a
common occurrence on SERPs, there can be multiple
winners whose positions on the page are influenced
by the amount each has bid. The ad with the highest
bid generally shows up first, though additional
factors such as ad quality and relevance can
sometimes come into play.
Pay Per Click
History of Pay per Click (PPC):
In February 1998 Jeffrey Brewer, a 25-employee
start-up company, presented a pay per click search
engine proof-of-concept to a conference in
California. This presentation and the events that
followed created the Pay per Click advertising
system. Credit for the concept of the Pay per Click
model is generally given to Bill Gross.
Google started search engine advertising in December
1999. It was not until October 2000 that the Adwords
system was introduced, allowing advertisers to
create text ads for placement on the Google search
engine. However, Pay per Click was only introduced
in 2002; until then, advertisements were charged at
cost-per-thousand impressions. Overture has filed a
patent infringement lawsuit against Google, saying
the rival search service overstepped its bounds with
its ad-placement tools.
Although a certain company started Pay per Click in
1998, another certain company did not start
syndicating the other certain company’s advertisers
until November 2001. Prior to this, a primary source
of SERPS advertising included contextual advertising
units (mainly 468x60 display ads).
Pay Per Click |
