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Pay Per Click (PPC) Advertisement

April 10, 2014

There are numerous forms of advertising and paid advertising are the most effective ones. Pay Per Click (ppc) is one such paid form of advertising which can generate traffic to your site and fetch you instant results. As the name suggests, the advertiser has to pay only if an user clicks on the ad.

How PPC works:

PPC works on auctions. The advertiser bids on the keywords or phrases that are relevant to the business. He can either bid on his own or allow Google to do the same. When a web user inserts the keyword in the search column, the search engine displays a list of websites which is either correlated or which matches the keyword. The PPC ads are generally displayed above the organic links or at the right side of the search results. The search engines will categorize them as sponsored links or sponsored ads so that it becomes easy to distinguish them from other forms of advertisement.

PPC= Cost of Advertisement / Number of clicks

PPC Models:

Flat-rate and Bid-based are two primary models on which PPC functions.

Flat-rate PPC model:

The advertiser and publisher agrees on a fixed price in Flat-rate PPC model, irrespective of any network or web area. It is mostly preferred by brands that publishes the rate cards. The content and the target audience are very specific here as every click is a cost to the company.

Bid-based PPC model:

In Bid-based PPC model, a private auction will be hosted by the publisher in the advertising network. The advertiser competes in the auction against the bid of competitors. He informs the publisher about the maximum amount that he can invest on  keyword. The bidding amount will not be disclosed to any participants. The advertiser can also bid depending upon the Geo-location, day, time of search and so on. The ad with highest bid gets the priority though other factors such as quality, content and keywords also plays a significant role.

Importance of PPC:

importance of ppc

It is difficult to survive in the business world without adapting to change. Traditional market is slowly vanishing paving way for the digital era. There is always a threat of new entrants in the market trying to rule over the existing brands. In such scenario, brands have to be proactive and act accordingly. PPC is one such marketing tool which will help you  to lead the business. It allows you to be listed at the top and generate more traffic to your website. It assists you to gather the market conditions in a short span of time. Ad test results can be easily obtained on real time basis using PPC models.

Thus, PPC is an efficient marketing tool in improving your brand presence and fetching you more customer leads.

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