Understanding Pay-Per-Click and Its Advantages

Understanding Pay-Per-Click and Its Advantages

Pay-per-click, or PPC as it is called, is an online advertising model where an advertiser may only be charged if someone clicks on their advertising. Advertisers in most cases will start off by bidding on a keyword or phrase which is relevant to their market. However in addition to the bidding system many content sites will just charge one flat rate for each click. The advantage from an advertiser's point of view is that they are only paying for ads which people are taking an interest in.

The One flat Rate Model

The one flat rate model is usually used by content websites such as blogs where an advertiser and publisher will agree on an amount which will be charged each time their advertising is clicked. In most cases the publisher will provide the advertiser with a rate card which includes other variables such as the duration the advertisement will display on the website, its size etc. Often the charges will vary depending on the content on the website; websites which are more relevant to your niche may be slightly more expensive than general websites. However it is possible to negotiate a deal or low CPC with publishers based on the volume of ads you want to place.

The Bidding Model

The bidding model is usually used by search engines whereby advertisers will bid on the keywords or phrases their advertising or niche is associated with. The rates of a keyword or phrase are not fixed and is usually based on how popular it is and how many people are using it at any given time. For instance the phrase 'Life insurance' is probably $5 a click where as 'cheap life insurance in New Jersey' will be cheaper depending upon how high the demand is for this phrase. The most common example of the bidding model is Google and its AdWords system that people use to put advertising on Google's search results.

Best model for affiliate programs

While the majority of affiliates use PPC's bidding model and in particularGoogle's AdWords to drive traffic to their websites it is important to note that this model is both expensive and can quickly clean out your advertising budget if you do not watch out. However this model works for 99% of affiliate programs out there but if you are on a budget you might want to use the fixed PPC model instead.

With the growing cost of using the bidding advertising network many advertisers are moving towards cheaper fixed PPC models. With the fixed model you get to dictate where your advertising appears on the advertising network based on your research. With some research and knowledge you can probably get as good if not better results than if you used the bidding system. It all really boils down to how well you know your niche and which keywords or key phrases you are trying to target. With the right combination it is not hard to make money online because thousands of people are doing it every day.

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