So what exactly is PPC?
PPC stands for Pay Per Click and it is also termed Cost Per Click (CPC) in internet marketing. Advertisers pay money to the website or search engine every time a reader clicks on the advertisement. There are two models to advertise on search engines as well as websites. One is the bidding model and second is the fixed rate model.
Bidding Model
In the bidding model the advertisers place bids to grab the spots on top pages of search engines or websites. The greater the bid, the more is the chance of winning. But one must keep in mind that they should be able to turn the investment profitable.
Bidding high with no major conversion means a lot of loss for the advertiser. And bidding isn’t as easy as it seems. The advertisers bid in terms of cents and it is quite time consuming too. Some websites place tools for automatic bidding but that can also be tiring. Major players with lot of businesses online can inflate the bidding amount by minute cents enabling them to win the auction.
Most of the times search engines place restrictions on keywords too so that narrows down the prospect to a great extent. The conversion rate is definitely high on search engine result pages as compared to websites but the amount is high too on search engine landing pages. Here is where fixed rate advertising seems cost effective.
Fixed Rate Model
This seems a better option to those fed up of bidding. Many websites have fixed rates to place advertising on their sites. Websites with lot of traffic do have higher charges but they are negotiable if the advertiser agrees on long term advertising. It is always profitable to pay a little more amount and place advertise on high traffic sites rather than on websites with low rates but low traffic. Banner ads are displayed as per the requirements of the advertiser and the advertiser needs to pay only for the clicks they get from the website. This is beneficial for both the website owner as well as the advertiser. The target marketing usually matches the queries with the relevant keywords and tags in the content and drives the traffic to the required field.