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ResponseWorks – Internet Marketing, Online Marketing, Digital Agency Sydney

We specialise in PPC (pay per click), Google AdwordsManagement, Website Optimisation and Search Engine Marketing and Services for small and medium size customers who want to grow.

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Contact Information
Danni Spaska
15 TheCorso, Manly, 2095
Manly
- 2095
Australia
Phone: 1300 551 905
Email: pressnarticles@gmail.com

Market Press Release – November 11, 2011 6:49 am – Pay per click (PPC) (also called Cost per click) is an Internet advertising model used to direct traffic to websites, where advertisers pay the publisher (usually a website owner) when the ad is clicked. With search engines, advertisers usually bid on keyword phrases relevant to their target market. Content sites commonly charge a fixed price per click rather than use a bidding system. PPC "display" advertisements are shown on web sites with related content that have agreed to show ads. This approach differs from the "pay per impression" methods used in T.V. and newspaper advertising.

In contrast to the generalised gateway, which looks to drive a high volume of traffic to one website, PPC integrates the so-called affiliate model, thatoffers purchase opportunities wherever people may be surfing. It does this by offering financial incentives (in the form of a percentage of revenue) to affiliated partner sites. The affiliates provide purchase-point click-through to the merchant. It is a pay-for-performance model: If an affiliate does not create sales, it represents no cost to the merchant. Variants include banner exchange, pay-per-click, and revenue sharing programs.

Websites that use PPC ads will display an advertisement when a keyword query matches an advertiser's keyword list, or when a content site displays relevant content. Such advertisements are called sponsored links or sponsored ads, and appear adjacent to or above organic results on search engine results pages, or anywhere a web developer chooses on a content site.

Among PPC providers, Google AdWords, Yahoo! Search Marketing, and Microsoft adCenter are the three largest network operators, and all three operate under a bid-based model.

The PPC advertising model is open to abuse through click fraud, although Google and others have implemented automated systems to guard against abusive clicks by competitors or corrupt web developers.

There are two models of PPC. In the flat-rate model, the advertiser and publisher agree on a fixed amount that will be paid for each click. In many cases the publisher has a rate card that lists the Cost Per Click (CPC) within different areas of their website or network. These different amounts are usually related to the content on pages, with content that generally attracts more valuable visitors having a higher CPC than content that attracts less valuable visitors. Nevertheless, in many cases advertisers can negotiate lower rates, especially when committing to a long-term or high-value contract.

The flat-rate model is specially common to comparison shopping engines, which usually publish rate cards. But, these rates are sometimes minimal, and advertisers can pay more for greater visibility. These sites are usually neatly classified into product or service categories, allowing a high number of targeting by advertisers. In many cases, the entire core content of these sites is paid ads.

The second type of PPC is bid-based PPC. In the bid-based model, the advertiser signs a contract that lets them compete against other advertisers in a private auction hosted by a publisher or, more commonly, an advertising network. Each advertiser informs the host of the maximum amount that he or she is willing to pay for a given ad spot (often based on a keyword), usually using online tools to do this. The auction plays out in an automated fashion every time a visitor triggers the ad spot.
For more information, visit: http://www.responseworks.com.au


Related Tags: Internet Marketing, online marketing, Digital Agency Sydney

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