Pay Per Click and How It Works.
Cost per click (CPC) is the sum paid by an advertiser to search engines and other web publishers for a click three times on their commercial which directs one visitor to the advertiser's web-site.
Pay per click (PPC) is a online marketing model used on sites, where advertisers pay their host only when their commercial is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market. Content sites frequently charge a fixed cost per click than use a bidding method.
Sites that utilize PPC ads will display an commercial when a keyword query matches an advertiser's keyword list, or when a content site displays relevant content. Such adverts 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.[1]
In contrast to the generalized portal, which seeks to drive a high volume of traffic to one site, PPC implements the so-called affiliate model, that provides purchase opportunities wherever people may be surfing. It does this by offering financial incentives (in the form of a percentage of revenue) to affiliated partner sites. The associates provide purchase-point click-through to the merchant. it is a pay-for-performance model: If an affiliate does not generate sales, it represents no cost to the merchant. Variations include banner exchange, pay-per-click, and revenue sharing programs.
Among PPC providers, Google AdWords, Yahoo! Search promotion, and Microsoft ad-Center are the three largest network operators, and all three operate under a bid-based model. Cost per click (CPC) varies depending on the search engine and the level of competition for a specific keyword.
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