PPC ( pay per click )
Google PPC ( pay per click ) is a form of advertising on the Internet in which the advertiser pays for every click made by the user to go to the site.
The model with “click-to-pay” payment in modern marketing is identified with contextual advertising . Accordingly, characteristics such as click-through rate (CTR), quality of content, number of impressions directly affect the effectiveness of CPC. The block placement position is of great importance to the quantitative factor “spin-off” and click-through of ads:
- Classic or Search Ads (PPC). Ads are placed above the results of the issuance – special placement, at the very bottom of the first page – guaranteed impressions, on the second and subsequent pages – dynamic impressions. Accordingly, special placement and guaranteed impressions receive maximum traffic – 95% or more. At the same time, 80-85% falls on the top ad unit. Click through rate ads in the special placement is higher, which means that the pay-per-click model is more effective in this case.
- Placing banners on the Google Display Network The bottom line is that the text and image ad is displayed on sites that match the subject of the user’s request and its behavioral metrics. The click-through rate of banners on the Display Network is slightly lower than in the search. Therefore, the Cost Per Mille ( CPM ) advertising model can be used here – the cost of a thousand impressions. That is, the advertiser pays the system or the site owner not for clicks, but for “untwisting” the banner.
- Remarketing The bottom line is somewhat similar to advertising on the GDN. The main advantage is the display of ads and banners to the user who showed interest (went to the site, clicked), but did not perform the target action – order, purchase, call. In remarketing, several models are used at the same time – this is pay per click, cost per thousand impressions and Cost Per Action (cost per action).
- he main difference between these advertising models in pricing. CPC – pay per click on an ad, CPM – cost per thousand impressions, CPA – pay per user action. Let’s take a closer look at the CPM and CPA models.
- Cost Per Mille / Thousand – the model is used in the media. In Internet marketing, they are used as a way to pay for advertising space on affiliate sites, social networks, blogs and other platforms on the network. In fact, CPM is a banner or teaser that is placed in a specific block on the site of the advertising distributor. Payment is charged for 1000 ad impressions to the audience of the resource.
- Cost-Per-Action – pricing model with payment for user actions on the advertising platform – ordered, bought, registered, called and more. For the advertiser, this is one of the best options for working with advertising distributors (webmasters) and affiliate platforms. The seller receives a specific return – the target action of the user.