What is it and how does it help companies?

Pay Per Click or PPC as it is commonly known as by the users of this strategy in Internet Advertising. This allows the viewer to navigate to different sites while clicking and the advertiser pays the publisher, by the number of hits or clicks the viewer makes. This is certainly a brilliant way to get paid, although it is an advantage for the advertiser.

The search engines set up allows targeted words to be posted in various articles or advertisements. Which will appeal to the target audience who visit the different sites. They click on these targeted words, and the publisher gets paid. The content site will charge a fixed rate or price per click and there in turn has no need for bidding on payment.

Surfing is the objective to these sites as there is no generalised portal or main searching requirement. The surfer or vistor will only visit the site to get a little or alot of information as the case may be. This PPC model provides purchasing options whenever and wherever the surfer maybe viewing. These sites are generally posted as ads or banners which is seen by the surfer and when clicked will generate what is called percentage of revenue to the affiliated site. Who have subscribed to this sort of incentive. The benefit is viewed as a win, win situation. The viewer gets information, and the option to purchase. The advertiser gets his product seen by thousands+ individuals and the publisher gets paid.

This kind of advertising is efficient and effective as it tells the advertiser how advantages his product is to him. It allows the advertiser to see how viable his product is and will help him to decide whether or not to allow this product to stay in the market. If the product is viable, the number of clicks that are generated will severely affect what is called click through rates (CTR), and these results in Pay-Per-Click(PPC).

PPC can attract fraud, as persons will go on sites and perpetrate what is called click fraud. Google has automatic systems in place to counter such corrupt and unscrupulous people and their activities.

There are two different types of PPC modules, and they are used by businesses who determine the viability of either, for their business. They are; Flat rate PPC and Bid-based PPC. In the Flat Rate PPC, the advertiser and publisher agree on a flat rate for the product, per click. With the Bid-based PPC, this is made to be more like an auction. The publisher holds a private auction for several advertisers, who then in turn, post private bids for the amount they are willing to pay for an allocated ad space. Whenever the space is clicked or visited. Usually, this is performed in a search engine results page; and the automatic bid occurs.

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