The term pay-per-click, abbreviated PPC is the payment method pay-per-click is mainly used in online marketing. Here, each click on an advertising medium such as a banner or a text ad is billed. The advertising company therefore does not pay for the ad itself to be shown (ad impression), but only when a click has actually been made. There are different types of pay-per-click advertising material: On the one hand, these can be placed in the form of advertisements on search results pages in search engines such as Google and Yahoo (search engine marketing). On the other hand, a text link or a display banner can be positioned on a blog or portal (affiliate marketing).
How does pay per click marketing work?
- In search engine marketing
- In affiliate marketing
In search engine marketing, the pay-per-click accounting model works as follows:
The search engine provides advertising spaces that are also marked as ads. These advertising spaces can be booked by advertising companies. However, since only limited advertising space is available, the principle of the highest bidder applies. The more an advertiser wants to pay for a click, the more advantageous the advertising medium is placed in the search result display by using PPC management Service.
In light of the limited advertising space available on search engines, businesses are increasingly turning to Toronto PPC agencies for help with PPC management. These agencies possess the expertise needed to help businesses develop effective ad campaigns that will reach their target audience and optimize their ad spend. By using PPC management services, businesses can take advantage of the highest bidder principle, whereby the advertiser who is willing to pay the most for a click is given priority in the search result display. With the help of a Toronto PPC agency, businesses can gain a competitive edge in the online advertising landscape and drive more traffic to their websites.
The user now enters something in the search input field and is presented with a result display matching the keyword they are looking for. This contains both organic search results and commercial ads (e.g. Google AdWords).
The user is thus shown target-group-specific advertisements, so-called ad impressions. However, the advertising company does not have to pay anything for the mere advertising display itself. Costs are only payable if the click is successful (pay-per-click). In this way you can reach a user if he shows interest in the offer. Whether the customer ultimately buys or not is irrelevant for CPC. The only thing that counts is that he has reached the advertiser’s website via the advertising medium.
The pay-per-click model in affiliate marketing works in a similar way:
So-called publishers or affiliates offer their advertising space on a portal, blog or other website. The advertisers or merchants can book these advertising spaces in the form of banners or text links. When surfing, users get to the publisher’s page and are shown the advertising. With a relevant advertisement, users can now click. With a final click, the merchant then pays a commission to the affiliate, for example, using a pay-per-click.
Other success-based billing models include:
- Cost-per-click: is often used as a synonym for pay-per-click
- Cost-per-order: cost per order
- Cost per sale: cost per sale
- Cost per lead: cost per contact
- Cost-per-action: cost per action
Reasons to choose PPC:
Here are the top five good reasons for choosing pay-per-click marketing for your business:
- You only pay when a user has really noticed and consciously clicked on your advertising material.
- You reach a target group that is very affine for your product or service.
- You significantly increase the reach of your products.
- You have only little spreading loss.
- You have full cost control because you largely determine the click price yourself.