Pay- per- click - Wikipedia. Pay- per- click (PPC), also known as cost per click (CPC), is an internet advertising model used to direct traffic to websites, in which an advertiser pays a publisher (typically a website owner or a network of websites) when the ad is clicked. Pay- per- click is commonly associated with first- tier search engines (such as Google Ad. Words and Microsoft Bing Ads).

With search engines, advertisers typically bid on keyword phrases relevant to their target market. In contrast, content sites commonly charge a fixed price per click rather than use a bidding system. Social networks such as Facebook and Twitter have also adopted pay- per- click as one of their advertising models. However, websites can offer PPC ads. 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, above, or beneath organic results on search engine results pages, or anywhere a web developer chooses on a content site. Pay- per- click has an advantage over cost per impression in that it tells us something about how effective the advertising was.

Clicks are a way to measure attention and interest. If the main purpose of an ad is to generate a click, or more specifically drive traffic to a destination, then pay- per- click is the preferred metric. Once a certain number of web impressions are achieved, the quality and placement of the advertisement will affect click through rates and the resulting pay- per- click. Construction. The basic formula is: Pay- per- click ($) = Advertising cost ($) .

• Pay-per-click (PPC), also known as cost per click (CPC), is an internet advertising model used to direct traffic to websites, in which an advertiser pays a publisher.
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In both cases, the advertiser must consider the potential value of a click from a given source. This value is based on the type of individual the advertiser is expecting to receive as a visitor to his or her website, and what the advertiser can gain from that visit, usually revenue, both in the short term as well as in the long term. As with other forms of advertising targeting is key, and factors that often play into PPC campaigns include the target's interest (often defined by a search term they have entered into a search engine, or the content of a page that they are browsing), intent (e. Flat- rate PPC. In many cases the publisher has a rate card that lists the pay- per- click (PPC) within different areas of their website or network. These various amounts are often related to the content on pages, with content that generally attracts more valuable visitors having a higher PPC than content that attracts less valuable visitors.

However, in many cases advertisers can negotiate lower rates, especially when committing to a long- term or high- value contract. The flat- rate model is particularly common to comparison shopping engines, which typically publish rate cards.

Bing Ads is a pay-per-click (PPC) advertising platform used to display ads based on the keywords used in a user’s search query. For advertisers placing a large. Bing Ads (formerly Microsoft adCenter and MSN adCenter) is a service that provides pay per click advertising on both the Bing and Yahoo!

These sites are usually neatly compartmentalized into product or service categories, allowing a high degree of targeting by advertisers. In many cases, the entire core content of these sites is paid ads.

Bid- based PPC. 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. When the ad spot is part of a search engine results page (SERP), the automated auction takes place whenever a search for the keyword that is being bid upon occurs. All bids for the keyword that target the searcher's Geo- location, the day and time of the search, etc. In situations where there are multiple ad spots, a common occurrence on SERPs, there can be multiple winners whose positions on the page are influenced by the amount each has bid. The bid and Quality Score are used to give each advertiser's advert an ad rank. The ad with the highest ad rank shows up first. How To Edit Kexts Hackintosh Laptops.

The predominant three match types for both Google and Bing are broad, exact and phrase match. Google also offers the broad modifier match type which differs from broad match in that the keyword must contain the actual keyword terms in any order and doesn't include relevant variations of the terms. These publishers sign up to host ads on behalf of the network.

In return, they receive a portion of the ad revenue that the network generates, which can be anywhere from 5. These properties are often referred to as a content network and the ads on them as contextual ads because the ad spots are associated with keywords based on the context of the page on which they are found.

In general, ads on content networks have a much lower click- through rate (CTR) and conversion rate (CR) than ads found on SERPs and consequently are less highly valued. Content network properties can include websites, newsletters, and e- mails. It is common practice amongst auction hosts to charge a winning bidder just slightly more (e. These systems can be used directly by the advertiser, though they are more commonly used by advertising agencies that offer PPC bid management as a service. These tools generally allow for bid management at scale, with thousands or even millions of PPC bids controlled by a highly automated system.

The system generally sets each bid based on the goal that has been set for it, such as maximize profit, maximize traffic, get the very targeted customer at break even, and so forth. The system is usually tied into the advertiser's website and fed the results of each click, which then allows it to set bids. The effectiveness of these systems is directly related to the quality and quantity of the performance data that they have to work with — low- traffic ads can lead to a scarcity of data problem that renders many bid management tools useless at worst, or inefficient at best.

History. For example, in 1. PPC was included in a web directory called Planet Oasis. This was a desktop application featuring links to informational and commercial web sites, and it was developed by Ark Interface II, a division of Packard Bell NEC Computers.

The initial reactions from commercial companies to Ark Interface II's . Credit for the concept of the PPC model is generally given to Idealab and Goto.

Bill Gross. It was not until October 2. Ad. Words system was introduced, allowing advertisers to create text ads for placement on the Google search engine. However, PPC was only introduced in 2. Cost per mille (CPM).

Overture has filed a patent infringement lawsuit against Google, saying the rival search service overstepped its bounds with its ad- placement tools.! When the syndication contract with Yahoo! Search Marketing had been the three largest network operators, all three operating under a bid- based model.

Their combined network of third party sites that allow Ad. Center ads to populate banner and text ads on their site is called Bing. Ads. The Commission ruled unanimously that Google was responsible for the content of its sponsored Ad. Words ads that had shown links to a car sales website Car.

Sales. The Ads had been shown by Google in response to a search for Honda Australia. The ACCC said the ads were deceptive, as they suggested Car.

Sales was connected to the Honda company. The ruling was later overturned when Google appealed to the Australian High Court. Google was found not liable for the misleading advertisements run through Ad. Words despite the fact that the ads were served up by Google and created using the company’s tools. IEEE Computer. 4. Shuman Ghosemajumder (March 1. Google Blog. Retrieved May 1.

Google Support. Retrieved 2. January 2. 01. 3. Search Marketing (May 1. Website Traffic Yahoo!

Search Marketing (formerly Overture). Retrieved May 1. 8, 2. Planet Oasis gives web sites promotion clout, Advertising Age July 8, 1. December 5, 2. 01. Overture and Google: Internet Pay Per Click (PPC) Advertising Auctions, London Business School, Accessed June 1. Jansen, B. Understanding Sponsored Search: Coverage of the Core Elements of Keyword Advertising.