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How Cost per Click is Determined in Pay per Click Marketing |
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Written by Sean Galusha
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Tuesday, 14 April 2009 17:33 |
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Banners advertising products or businesses are a usual sight in websites. They also appear at boxes at the side of web page when your do a search in Google. Some may appear at the top of the list of search results. These indicate that the website owner or publisher is hosting the ad.
by SeanGalusha
Banners advertising products or businesses are a usual sight in websites. They also appear at boxes at the side of web page when your do a search in Google. Some may appear at the top of the list of search results. These indicate that the website owner or publisher is hosting the ad.
The putting up of ads in websites could be a way that the website owner can compensate for his time, effort or financial investment in putting up his website for internet use.
There are many ways on how the site owner can earn from the advertisement banners that are posted on his site. And one way to earn money is when a user clicks on the banner. The site owner will earn if the arrangement with the advertiser is for pay per click marketing.
Advertisers who opt to use pay per click marketing will only pay whenever an online user has clicked his ad or the banner.
Now in this advertising model called pay per click, two tools are used in determining the cost per click on the part of the advertiser or the earnings per click on the part of the site owner.
The first one is using a flat rate cost per click. In this way, the website owner and the advertiser agree on a flat rate that the website owner will be paid per click of the ad. This flat rate on the part of the advertiser is his cost for every click of the ad.
Advertisers most often keep a record of their rates depending on the webpage their ads are posted to, and depending on how the contents of these sites are capable of attracting interested customers to the his business.
Secondly, cost per click is determined through bidding. In this method, the publisher or the website owner will ask interested advertisers to participate in a bidding to advertise in on one spot of the website or web page.
Cost per click in bidding is determined by the highest amount the advertiser is willing to pay per click of his ad in a certain website.
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About the Author: Sean Galusha is the founder and CEO of Localize Internet Marketing, a Local Internet Marketing. He and his team of experts focus on delivering targeted local results to their customers by utilizing Internet marketing techniques such as Pay Per Click Management. |
