Pay Per Click (PPC) is an Internet advertising model used on search engines, advertising networks, and content sites, such as blogs, in which advertisers pay their host only when their 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.Websites that utilize PPC 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.
Find below the two models of PPC :
Flat-Rate PPC Model- In the flat-rate model, the advertiser and publisher agree upon a fixed amount that will be paid for each click.
Bid-Based PPC Model- In the bid-based 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. Although many PPC providers exist, Google AdWords, Yahoo! Search Marketing, and Microsoft adCenter are the three largest network operators, and all three operate under a bid-based model.
Google AdWords- AdWords is Google’s flagship advertising product and main source of revenue ($16.4 billion in 2007). AdWords offers pay-per-click (PPC) advertising, and site-targeted advertising for both text and banner ads. The AdWords program includes local, national, and international distribution. Google’s text advertisements are short, consisting of one title line and two content text lines. Image ads can be one of several different Interactive Advertising Bureau (IAB) standard sizes.
Yahoo! Search Marketing- Yahoo! Search Marketing is a keyword-based “Pay per click” or “Sponsored search” Internet advertising service provided by Yahoo!. Yahoo began offering this service after acquiring Overture Services, Inc. (formerly Goto.com). Goto.com was an Idealab spin off and was the first company to successfully provide a pay-for-placement search service following previous attempts that were not well received.
Microsoft AdCenter- Microsoft adCenter (formerly MSN adCenter), is the division of the Microsoft Network (MSN) responsible for MSN’s advertising services. Microsoft adCenter provides pay per click advertisements.
How can I manage PPC?
PPC campaign management includes the devising of PPC affiliate programs and creation of PPC banners ensuring increased click-through rates and signups. A pay per click campaign is managed with afour-fold method: