Cost Per Click

Information about Cost Per Click

A Google promotional graphic, highlighting AdWords, the largest PPC program

Internet Marketing
Display advertising Interactive advertising Email marketing Web analytics
Affiliate marketing
Cost Per Action Revenue sharing Contextual advertising
Search engine marketing
Search engine optimization Social media optimization Pay Per Click advertising Paid inclusion
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Pay per click (PPC) is an advertising model used on search engines, advertising networks, and content websites/blogs, where advertisers only pay when a user actually clicks on an ad to visit the advertiser's website. Advertisers bid on keywords they believe their target market would type in the search bar when they are looking for a product or service. When a user types a keyword query matching the advertiser's keyword list, or views a page with relevant content, the advertiser's ad may be shown. These ads are called a "Sponsored link" or "sponsored ads" and appear next to, and sometimes, above the natural or organic results on search engine results pages, or anywhere a webmaster/blogger chooses on a content page.

Pay per click ads may also appear on content network websites. In this case, ad networks such as Google Adsense and Yahoo! Publisher Network attempt to provide ads that are relevant to the content of the page where they appear, and no search function is involved.

While many companies exist in this space, Google AdWords, Yahoo! Search Marketing, and MSN adCenter are the largest network operators as of 2007. Depending on the search engine, minimum prices per click start at US$0.01 (up to US$0.50). Very popular search terms can cost much more on popular engines. Arguably this advertising model may be open to abuse through click fraud, although Google and other search engines have implemented automated systems to guard against this.

Categories

PPC engines can be categorized into two major categories "Keyword" or sponsored match and "Content Match". Sponsored match display your listing on the search engine itself whereas content match features ads on publisher sites and in newsletters and emails. ^[1]

There are other types of PPC engines that deal with Products and/or services. Search engine companies may fall into more than one category. More models are continually evolving. Pay per click programs do not generate any revenue solely from traffic for sites that display the ads. Revenue is generated only when a user clicks on the ad itself.

Keyword PPCs

Advertisers using these bid on "keywords", which can be words or phrases, and can include product model numbers. When a user searches for a particular word or phrase, the list of advertiser links appears in order of the amount bid. Keywords, also referred to as search terms, are the very heart of pay per click advertising. The terms are guarded as highly valued trade secrets by the advertisers, and many firms offer software or services to help advertisers develop keyword strategies. Content Match, will distribute the keyword ad to the search engine's partner sites and/or publishers that have distribution agreements with the search engine company.

As of 2007, notable PPC Keyword search engines include: Google AdWords, Yahoo! Search Marketing, Microsoft adCenter, Ask, LookSmart, Miva, Kanoodle, Yandex and Baidu.

Online Comparison Shopping Engines

"Product" engines let advertisers provide "feeds" of their product databases and when users search for a product, the links to the different advertisers for that particular product appear, giving more prominence to advertisers who pay more, but letting the user sort by price to see the lowest priced product and then click on it to buy. These engines are also called Product comparison engines or Price comparison engines.

Some Online Comparison Shopping engines such as Shopping.com use a PPC model and have a defined rate card. ^[2] whereas others such as Google Product Search, part of Google Base (previously known as Froogle) do not charge any type of fee for the listing but still require an active product feed to function.^[3]

Noteworthy PPC Product search engines include: Shopzilla, NexTag, and Shopping.com.

Service PPCs

"Service" engines let advertisers provide feeds of their service databases and when users search for a service offering links to advertisers for that particular service appear, giving prominence to advertisers who pay more, but letting users sort their results by price or other methods. Some Product PPCs have expanded into the service space while other service engines operate in specific verticals.

Noteworthy PPC services include NexTag, SideStep, and TripAdvisor.

Pay per call

Similar to pay per click, pay per call is a business model for ad listings in search engines and directories that allows publishers to charge local advertisers on a per-call basis for each lead (call) they generate. The term "pay per call" is sometimes confused with "click to call". Click-to-call, along with call tracking, is a technology that enables the “pay-per-call” business model.

Pay-per-call is not just restricted to local advertisers. Many of the pay-per-call search engines allows advertisers with a national presence to create ads with local telephone numbers.

According to the Kelsey Group, the pay-per-phone-call market is expected to reach US$3.7 billion by 2010.

History

In February 1998, Jeffrey Brewer of Goto.com, a 25 employee startup company (later Overture, now part of Yahoo!), presented a PPC search engine proof-of-concept to the TED8 conference in California.^[4] This and the events that followed created the PPC advertising system. Credit for the concept of the PPC model is generally given to the Idealab and Goto.com founder, Bill Gross.

Google started search engine advertising in December 1999. It was not until October 2000 before the adwords system was introduced. Allowing advertisers to create text ads for placement on the search engine. However PPC was only introduced in 2002, until then, advertisments were charged at CPM. Yahoo Advertisments have always been PPC, since its introduction in 1998.

External links

References

1. ^ Website Traffic Yahoo! Search Marketing (formerly Overture) Yahoo Inc., Accessed June 12 2007
2. ^ [https://merchant.shopping.com/enroll/app?service=page/RateCard Shopping.com Merchant Enrollment] Shopping.com, Accessed June 12 2007
3. ^ Sell on Google Google Inc. Accessed June 12 2007
4. ^ Overture and Google: Internet Pay Per Click (PPC) Advertising Auctions, London Business School, Accessed June 12 2007

Internet marketing, also referred to as online marketing or Emarketing, is marketing that uses the Internet. The Internet has brought many unique benefits to marketing including low costs in distributing information and media to a global audience.
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Display advertising is a type of advertising that may, and most frequently does, contain graphic information beyond text such as logos, photographs or other pictures, location maps, and similar items.
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Interactive Advertising is the use of interactive media to promote and/or influence the buying decisions of the consumer in an online and offline environment. Interactive advertising can utilise media such as the Internet, interactive television, mobile devices (WAP and
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Email marketing is a form of direct marketing which uses electronic mail as a means of communicating commercial or fundraising messages to an audience. In its broadest sense, every email sent to a potential or current customer could be considered email marketing.
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Web analytics is the study of the behaviour of website visitors. In a commercial context, web analytics especially refers to the use of data collected from a web site to determine which aspects of the website work towards the business objectives; for example, which landing
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Affiliate marketing is a method of promoting web businesses (merchants/advertisers) in which an affiliate (publisher) is rewarded for every visitor, subscriber, customer, and/or sale provided through his/her efforts.
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Cost Per Action or CPA (as it is often initialized to) is a phrase often used in online advertising and online marketing circles.

CPA is considered the optimal form of buying online advertising from a direct response advertiser's point of view.
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Revenue sharing is the splitting of operating profits and losses between the general partner(s) and limited partners in a limited partnership. More generally, the practice of sharing operating profits with a company's employees, or of sharing the revenues resulting between
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Contextual advertising is the term applied to advertisements appearing on websites or other media, such as content displayed in mobile phones, where the advertisements are selected and served by automated systems based on the content displayed by the user.
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Search Engine Marketing, or SEM, is a form of Internet Marketing that seeks to promote websites by increasing their visibility in the Search Engine result pages (SERPs).
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Search engine optimization (SEO) is the process of improving the volume and quality of traffic to a web site from search engines via "natural" ("organic" or "algorithmic") search results.
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Social media optimization (SMO) is a set of methods for generating publicity through social media, online communities and community websites. Methods of SMO include adding RSS feeds, adding a "Digg This" button, blogging and incorporating third party community
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Paid inclusion is a search engine marketing product where the search engine company charges fees related to inclusion of websites in their search index. Paid inclusion products are provided by most search engine companies, the most notable exception being Google.
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Advertising is paid, one-way communication through a medium in which the sponsor is identified and the message is controlled by the sponsor. Variations include publicity, public relations, etc..
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search engine is an information retrieval system designed to help find information stored on a computer system. Search engines help to minimize the time required to find information and the amount of information which must be consulted, akin to other techniques for managing
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advertising network (also called an online advertising network or ad network) is a collection of (often unrelated) online advertising inventory. When it is clear that the environment involved is the Internet, companies who run or administrate such networks are also
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A website (alternatively, Web site or web site) is a collection of Web pages, images, videos or other digital assets that is hosted on one or several Web server(s), usually accessible via the Internet, cell phone or a LAN.
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blog (a portmanteau of web log) is a website where entries are written in chronological order and commonly displayed in reverse chronological order. "Blog" can also be used as a verb, meaning to maintain or add content to a blog.
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A keyword is a word or concept with special significance, in particular any word used as the key to a code or used in a reference work to link to other words or other information.
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Target market is, in marketing, the market segment to which a particular product is marketed.
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Sponsored links are text-based advertisements that describe an advertiser’s Web site and the products and services offered. A hyperlink is included, so that interested consumers may click on the advertisement and go to the advertised site.
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A search engine results page, or SERP, is the listing of web pages returned by a search engine in response to a keyword query. The results normally include a list of web pages with titles, a link to the page, and a short description showing where the keywords have
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The webmaster (feminine: webmistress), also called the system administrator, the author, or the website administrator, is the person responsible for designing, developing, marketing, or maintaining a website.
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AdSense is an ad serving program run by Google. Website owners can enroll in this program to enable text, image and, more recently, video advertisements on their sites. These ads are administered by Google and generate revenue on either a per-click or per-thousand-impressions basis.
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The Yahoo! Publisher Network (abbreviated YPN) is a beta network, launched on August 2, 2005 by Yahoo!. As the service is currently in Beta, it is currently only accepting US-Based publishers; it is believed that Yahoo! will expand this when the program comes out of Beta.
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AdWords is Google's flagship advertising product and main source of revenue. AdWords offers pay-per-click (PPC) advertising, and site-targeted advertising for both text and banner ads. The AdWords program includes local, national, and international distribution.
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Yahoo! Search Marketing ( searchmarketing.yahoo.com ) is a keyword-based "Pay per click" or "Sponsored search" Internet advertising service provided by Yahoo!.

Yahoo began offering this service after acquiring Overture Services, Inc. (formerly Goto.
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Microsoft adCenter (formerly MSN adCenter), is the division of the Microsoft Network (MSN) responsible for MSN's advertising services. Microsoft adCenter currently provides pay per click advertisements.
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Click fraud is a type of internet crime that occurs in pay per click online advertising when a person, automated script, or computer program imitates a legitimate user of a web browser clicking on an ad, for the purpose of generating a charge per click without having actual
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