Advertising Cost and Pay Per Click Marketing

by Sean Galusha

Pay per click marketing (PPC) is an effective online marketing tool, but aside from that, it has also provided many website owners the opportunity to make money on the internet. Indeed, PPC has been a good avenue for website owners to earn from their sites.

Pay per click marketing emerged in 2002 and since its introduction, it has become a popular tool for businesses to advertise their products online. Google also adopted the concept in their popular Google Adwords tool.

Pay per click marketing works by putting your ads on websites. It means you have to make an agreement with website owners to display your ad on their sites. The posting of your ads does not involve cost but when interested online users click on your ad, you have to pay the website owner the agreed rate per click of your ad.

There are two ways in determining the cost in pay per click marketing. It can be determined through flat rate and through bid-based.

If you are to advertise using the flat rate pay per click marketing, a flat rate will be agreed between you and the website owner. It is a fixed rate that you will be paying the website owner per click of your ad. You can also keep a rate card containing the different rates for each particular website or web page.

Bid-based pay per click is quite different in the sense that the cost per click of your advertisement will be based on how much you are willing to pay for an ad space when your chosen keywords are entered in the search engine. Bid-based pay per click can also mean competing with other advertisers in getting the lowest cost per click, as this will be done through bidding.

Whatever model or ways you adopt for your pay per click marketing, it is important to keep in mind the main goal of your pay per click campaign and that is not just getting many clicks to your ad but making sure also that these will be converted to sales.

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