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AdWords Pay-Per-Click Marketing
Pay-Per-Click (PPC) advertising is an online advertising payment model in which you pay only when someone clicks on the ad and not by how many times it is displayed.
Google Adwords is an perfect example of Pay-Per-click advertising.
“In a PPC agreement, you the advertiser only pays for qualifying clicks to your website based on a per-click rate that is preset.
Other types of advertising includes Cost Per Click (CPC) Advertising, the cost or cost-equivalent paid per click-through and Cost-Per-Action (CPA) advertising, an online advertising payment model in which payment is based solely on qualifying actions such as sales or registrations.
When you pay per click like in Google AdWords, you only have to pay for the actual clicks and traffic going to your site.
You can bid on the specific Keywords you want and you set the maximum price you are willing to pay for per click.
For example if you are a mortgage broker in Brooklyn New York and you are looking for prospects in Brooklyn only, you can bid on the keyword “mortgage broker in Brooklyn New York” and decide to pay $.05 per click.
Now you know that your money is being spent only on people looking for a mortgage in Brooklyn NY.
The good news is you only have to pay when one of these prospects click on your ad to visit your website.
If you were paying per impression, you, the advertiser are assuming the risk of low-quality traffic generated by the publisher/website owner.
In other words, not everyone who sees the ad will be interested in getting a mortgage in Brooklyn NY.
If you were paying for actions (CPA), the publisher/website owner assumes the risk of low-converting offers or the effectiveness of you ad.
In other words, if you have a poor add or a poor offer and no one buy, the publisher/website owner would loose money.
In the Pay-Per-Click (PPC) model, the publisher does not have to worry about the sales conversion rate of the your website site, and the you the advertiser you don’t have to worry about how many impressions it takes to to get the amount of traffic you want for you website.
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