Pay per click is one form of internet marketing where advertisements are given in publishers’ website and every time those advertisements are clicked, the advertiser needs to pay money to the publisher. It is one form of increasing traffic to your websites. The search engine variant of pay per click is that you need to bid for keywords that are more popular in the searches. Bidding system and fixed price per click are available but the latter is used more often.
Pay per click also includes banner ads where, advertisements are displayed in websites and search engines as banners. One advantage of pay per click when compared to other marketing strategies is that you need to pay money only for traffic you receive. If the publisher of your ad is not getting any traffic, then eventually you will also not receive traffic.
The good thing is, you need not pay the amount to the publisher. What actually happens in such advertising models is that, whenever you search for a particular term, the websites display ads based on your search, just above or below the organic search results. Such sponsored links takes the users to the advertisersí website.
The popular pay per click providers are Google AdWords, Microsoft adCenter and Yahoo search marketing. But Yahoo and Microsoft have now joined hands to provide search results through Bing and the PPC services are renamed as AdCenter. Sometimes, the websites and the competitors fraudulently click ads, called as click frauds and hence get benefits. Such frauds are prevented by all search engines by implementing automatic guard systems.
As mentioned above, there are a couple of models for determining payments for the clicks: flat rate model and bid based model. The advertisers need to consider the target audience and the value of click from the publisher’s site. The revenue to the advertiser based for both short and long term should also be considered and for that you need to know the demographics of the online population. The flat rate model consists of an agreement between the publisher and advertiser for a fixed amount per click. The publisher will provide the advertiser with a rate card describing various areas of a web page and the rates for those areas. With internet marketing getting popular, the pay per click method is also used more often.