Costs Involved in Pay Per Click Marketing

The Pay Per Click industry has thrived and has been a source of income for thousands if not millions of individuals who maintain websites, either for personal or for business use. Pay Per Click Marketing is an essential tool of every website owner to earn money and this is also a necessity to companies who to promote their products online.

The basic concept of pay per click marketing is that companies will post their ads on a number of websites and pay the website owners whenever online users click the ad and redirected to their sites.

The concept of pay per click marketing was introduced in 2002 and has become popular since then. Google Adword has also used the method and brought more popularity to pay per click. However, the costing in this type of marketing varies.

One of the important things to take note when engaging into pay per click marketing is the cost of an advertisement, in this case, the cost per click of the advertisement posted in the host website. There are actually two models of pay per click marketing. These are the flat rate and the bid-based models.

Always remember that the target of advertising is to make money through a sale. For this reason, the cost or potential value is determined not only on the actual click but from potential sales in the future because of this click from a given source.

Flat Rate PPC

Flat Rate payment model or scheme of the Pay Per Click Marketing campaign is a model in which the advertiser and the publisher agree on a certain amount of payment made for each click.

Publishers, or the companies, usually provide a rate card for the advertisers, the website owners. The clicks will have standard rates depending on which web page the customer landed.

Bid-Based Costing

In the bid-based model, the advertisers are allowed to compete with other advertisers in the Internet through bidding as to who can collect the lowest amount of cost per click.

Bid-based costing also means how much the advertiser is willing to pay for a click on his ad. In this case, when online users type in the advertiser's keywords and popular sites appear on the list, advertisers most often bid for an ad space on these sites and cost will depend on how much he is wiling to pay.

< Prev		Next >