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What Is Pay Per Click Advertising?

What Is Pay Per Click Advertising?

You may sometime have noticed the advertisements that appear alongside search results on Google and other search engines. You are already familiar with pay-per-click, or PPC Advertising.

Pay-Per-Click is a model of internet marketing in which advertisers pay a fee every time the users click on one of their ads.

It’s a way of buying visits to someone’s site rather than naturally earning those visits.

In this, businesses running ads are charged only when a user actually clicks on their ad, hence the name “Pay-Per-Click.”

PPC ad formats or POP Ups:

The most usual PPC ad format appears on search results pages of search engines like Google or Bing. Advertisers can place their brand, product, or service front and center in an ad that targets a specific keyword or behavior.

These ads pop up when the users search for something online using any search engine like Google, mostly when they are performing commercial searches, meaning that they’re looking for something to buy. Their search could be anything from a mobile search (someone looking for something to eat) to a local service search (someone looking for a plumber in their area) to someone shopping for a gift (“Father’s day Gifts”) or any high-end item.

Different types of PPC Ads:

There are various types of PPC ads, including search ads, local search ads, display ads, and remarketing. These ads can pop up on web pages, social media platforms, web pages, and mobile apps. They usually look similar to the content around them. For example, the ads on social media channels such as Facebook and Twitter have the same format as organic posts but are marked with “Sponsored” or “Promoted.”

Online advertising hosts charge their users in various ways. Pay-per-click where you pay every time someone clicks on your ad—is the most common model, but many advertising platforms use cost-per-action models. With cost-per-action advertising, you only pay when someone does take an action that you want after they click on your ad.

Cost per action advertising overall involves less risk for advertisers than other advertising techniques. As you only pay when you get a lead or a sale, you get yourself protected from potential eyeballs that won’t convert and click fraud. Those possibilities can put a dent in your pocketbook fast.

At the same time, you only have to pay when you have a relatively right amount of money coming in.

What are the Cons to this model?

But it has some cons too. You can lose money from a cost per action campaign if the ratio of leads to sales is low. You may be paying publishers more for leads than you are earning from sales revenue.

If you go through a loss, you can negotiate a lower cost per action fee from the publishers hosting your ads. And the other option is that you can switch over to a CPA campaign based on sales.

Although it is ultimately up to a publisher to accept or reject your offer, you should go into cost per action negotiations with a figure in mind. It’s essential to have your mindset on how much you are willing to spend per action.

There are two different ways to use cost per action advertising:

  1. Conventional CPA Advertising

    If your site has a robust and reliable track record of attracting traffic, some hosts and publishers will negotiate a particular cost-per-action with you.

    For example, Google has a CPA advertising program that you can use to place ads on Google’s affiliate websites. To get qualified, you have to prove that your website attracts the right audience, generates enough conversions, and is a reliable source of income.

    Other networks like LinkShare and Affliate.com have their criteria you’ll need to meet if you want to use their CPA services. Individual companies and sites usually offer less reach, but they are often more flexible about who they accept and what they charge per action.

  2. Target CPA

    The other one is a less conventional way to use cost-per-action in your advertising. In this, it uses one of the cost-per-action bidding options advertising platforms like Facebook or AdWords offer.

    However, you can’t negotiate a specific cost-per-action that you pay on these advertising platforms. But they have advanced algorithms that can figure out the clicks that are more likely to produce conversions and increase the chances of your ads being seen and clicked.

    Technically, you pay-per-click, but you do set a target CPA, and the platform uses its algorithm to try and generate actions at your target price. This CPA bidding model doesn’t exactly fit the classic definition of cost-per-action. Still, it can be a good option if you’re interested in a target CPA, but don’t think that the standard CPA advertising model is right for your business.

How Does Pay Per Click Work?

For ads to appear next to the results on a search engine, which is referred to as a Search Engine Results Page (SERP), advertisers cannot just quickly pay more to get their ads to appear more prominently than their competitor’s ads. Instead, it depends on a process known as the Ad Auction, which is an entirely automated process that Google and some other major search engines use to determine the relevance and validity of advertisements on their SERPs.

When talking about PPC, there are three main parts. First, the advertisers, then, the middle man or the PPC network and then the publishers. Advertisers are businesses or individuals who make use of PPC to promote their products and services.

When the criteria for the right keywords and audience criteria are met, advertisers bid on the supposed value of clicking the ad. The ad is displayed on the results page with the sponsored link, and a small fee is charged when the ad is clicked.

When advertisers are all competing for the same keyword, it’s evident that the keyword price will be high. As there are only a few advert slots on Google’s home page, the businesses in competition need to battle it out to claim their spot. This is where bidding comes into play.

Start by setting the bids for how high up in the ad section of the search results from their ad will show. Apart from the bid price, the advertising platform also looks at factors such as quality score and ad extensions to determine which ad is suited for the highest position. For example, the quality score sums up the quality of your ad based on ad relevance, landing page experience, and click-through rate.

If you want the chances of having a successful campaign to be high, you need to ensure that your adverts have a good quality score. It means ensuring you have a relevant ad with relevant keywords, a good CTR, and a great landing page will pay dividends in the long term.

If your investment is enough, PPC is the fastest way to be on the top. If you know how to make way around the platform, you can set up a PPC campaign in less than an hour and appear immediately in the sponsored results.

Best sites for pay per click advertising

  1. Media.net

    It is a Yahoo-Bing ad network. The internet giants, Yahoo and Microsoft, had to combine their resources to offer a viable ad network alternative to AdSense. It will give you relevant ads that are based on a website/webpage slot. Publishers can also have tools to track their ad performance in real-time.

  2. Infolinks

    It claims to be a smart ad platform for publishers to make money through their blogs and websites. Over 100,000 online publishers worldwide generated high revenue using it. Infolinks is one of the most popular supplementary income sources because its ad units are comparatively modest.

  3. Google AdSense

    For prospering bloggers and website owners, Google AdSense is a go-to place. It can deliver high-quality, relevant ads that make it even better, along with the high CTR on ads.

  4. Timespost.net

    It is a content discovery platform or a native ad network for publishers. Besides the exceptional strategies around native advertising, it is also known to offer some high CPC or PPC deal to publishers.

  5. ClickAdilla

    It is a self-serve ad network for publishers. It offers various ad formats. Also, it enables targeting based on geography, browser, IP address, and other categories.

  6. Vibrant Media

    It is one of the more popular PPC ad networks. We can see its premium brand advertisers in a lot of famous high traffic sites. The PPC rates for this are among the highest in the whole industry, but the capture is that they don’t let just any website to get joined. Your site has to be considered premium.

  7. Clickadu

    It is a publisher’s ad network that deals with over 740M ad impressions daily. Although it has no minimum traffic requirement supporting even the small publishers for inventory monetization, the publisher’s website still needs to go through auditing for Clickadu to accept and approve it.

  8. AdBlade

    It is a content-style ad native ad network. It has a self-serve platform for publishers where publishers can optimize the ad units to serve desirable ads. The company affirms to offer three times better clicks on ads with their premium content-style ads. The minimum traffic requirement is 500,000 pageviews.

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