Advertising has gained tremendous importance in the marketing arena. Newer avenues have emerged giving much more than just the awareness factor to be looked upon. One such arena for marketing where advertising is gaining ground is Internet marketing. Many advertising techniques have come up for web based marketing or advertising projects. One of the Internets advertising techniques is termed as PPC or Pay Per Click. The Pay Per Click technique is primarily used for websites, search engines and advertising networks.
The idea behind the PPC technique is very simple yet effective. Advertisers in order to make their advertisements seen by people offer them money to visit their website and click on a particular ad. This in turn generates revenue for the advertising companies. With search engines, Pay Per Click advertisements are usually some text ads that are strategically placed near search results; when a site visitor clicks on the advertisement, the advertiser is charged a small amount. As the number of clicks increase, the revenue for advertising companies increases.
In today’s tough competition, the major players in this segment include Google AdWords and Yahoo search engine. As per the usage of the Pay Per Click facility, these are classified into three types of engines. These classifications are given as “keyword”, “product” and “service” engines. According to the nature of the job, these classifications differ. Normally the rates for Pay Per Click campaigns come to around $0.01 per click, but biger search engines pay upto $0.5 per click. Though it generates a small amount for the person who earns via PPC, it proves useful for people who spend around 4-5 hours on the net.
The very heart of Pay Per Click advertising lies in the keyword search. When a prospective client searches for a particular word or phase, a list of advertisement links appear. Clicking on any one of them increases the visitor count for that particular advertisement and thus creates revenue for the advertising company. Thus, every advertising company wants to be in the first few search counts that the user sees.
Almost the same kind of structure follows for the other two classifications. Pay Per Click is not just restricted to local advertisers. It is done on a large scale to increase the number of clicks in a single day. Nowadays many companies exist that provide Pay Per Click advertising. Judging the best out of them is a real concern for companies these days. Many of them exist only on paper and thus can be cause of fraudulent activities. You need to be extra careful while choosing a advertising agency for such advertising campaigns. For those of you who want to make some money by clicking on ads, it provides a good opportunity to earn some extra income.
Laurie Buckley
http://www.articlesbase.com/seo-articles/pay-per-click-advertising-55235.html
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How much should I charge for pay per click advertising with my website?
I usually charge $100 a month -flat rate- on my website for advertising. I currently have a client that wants pay per click. I have no problem tracking the clicks- but I am not sure what a fair rate is- or if there is a customary range depending on your site’s street cred.
To define how much should you charge for every click you have to answer two questions first:
1. How much should you charge for 1 CPM (Cost per Thousand impressions)
2. What is the average click-through ratio of your website (number of clicks / number of impressions)
Usually the cost per CPM varies between $ 0.5 and $ 10. That has to do with how much targeted is the audience which is exposed to the advertising message. If your site has a specific visitors profile then you can select a price that is closer to $ 10 per CPM.
The average click-through ratio is about 5%, of course this varies a lot and depends on many factors like the effectiveness of the advertising message, the banner attractiveness etc. Supposing that the average click-through ratio of your website is 5% then the charge per click should be between $ 0.01 to $ 0.2. Again if the visitors of your site constitute a specific target group then the $ 0.2 per click is just fine.
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