PPC (Pay-Per-Click)

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What is PPC?

Pay-per-click (PPC) is a type of digital advertising in which advertisers pay a fee each time one of their ads is clicked. The fee is usually paid when a user clicks on an advertisement displayed on a search engine results page (SERP) or another website.

Pay-Per-Click Models

The flat-rate or bid-based model is commonly used to determine pay-per-click advertising rates.

1. Flat-rate model

A publisher receives a predetermined payment from an advertiser for each click in the flat rate pay-per-click model. Publishers typically maintain a list of various PPC rates that are applicable to various parts of their website. Keep in mind that publishers are frequently amenable to price discussions. If an advertiser offers a lengthy or valuable contract, a publisher is very inclined to reduce the set price.

2. Bid-based model

Each advertiser submits a bid using a maximum amount of money they are ready to pay for an advertisement spot in the bid-based model. The publisher then uses automated systems to conduct an auction. When a visitor activates the advertisement, an auction is launched.

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Remember that the rank of the bids, not the overall amount of money being given, usually determines the auction’s winner. The ranking takes into account both the sum of money being offered and the caliber of the content being provided by an advertisement. As a result, the bid is just as significant as the content’s relevance when it comes to pay-per-click marketing, relevance is essential. The users that click on your advertisements are looking for particular services, details, or goods. PPC allows advertisers to compete for ad placement, which commonly appears through sponsored links on search engines like Google. The appeal of PPC lies in the ability of advertisers to show a customized advertisement at the precise moment when a user searches for a term. The advertiser can bid, for instance, to have their ad appear at the top of the list when someone searches for “red dress” and is interested in red gowns.

Primary goals of PPC

Three objectives underlie pay-per-click:

  • Obtain leads
  • Improve sales
  • Increasing brand awareness

You must compensate the search engine when a user clicks on your advertisement. The cost is justified if your adverts are very pertinent and operate in your favor. The visitor to your website is worth more to you than the money they paid. The price becomes insignificant in comparison to the profit, for instance, if your cost per click is around $4 and a customer visits your site and spends $300 on your good or service.

Pay-per-click (PPC) advertising is an effective and efficient way to drive targeted traffic to your website and generate leads and sales. At Jogosoft, we offer a full range of PPC services, from strategy development to execution and optimization, to help you reach your target audience and achieve your marketing goals.