What Does Pay Per Click Means And How PPC Works ?
PPC stands for Pay per click and also known as CPC (cost per click). Both the terms have same meaning. For representing any advertising agency name or Method of advertising we normally use word PPC and For the rate decision term used is CPC. PPC is one the most famous and biggest term in Internet marketing. There are two different parties Advertiser and Publisher Who depends On PPC advertising. Advertiser use PPC advertising for branding their products and services by advertising their online businesses to reach more targeted audience within specific budget. For Publishers of Websites and Blogs, PPC holds best position for major source of the online earning. Make Money from Pay per click ads is basic and easiest way for startup who don’t have deep knowledge about marketing yet.
PPC advertising is playing a main role in building a relationship between two companies, websites or blogs. Advertiser depend upon Publisher for getting visitors and Publisher depend on Advertiser to earn revenue by ads placements. Some of Big brands like Google, Yahoo and Facebook having major source of earning is through PPC ads.
How PPC Advertising Relationship Works ?
PPC is a type of an online advertising technique. If you want to understand more about Advertising then i recommend to read about How Online Advertising Works ? . PPC is an easiest way to drive traffic from one website to another on the bases of clicks. PPC requires minimum two different parties or websites in which one website or Party act as Advertiser and other act as Publisher.
Advertiser wants more traffic and customers on there site or product to grow there business. So they adopt CPC based method to pay money to publisher site for every click on Ad. In that way advertiser have to pay for every successful unique click on their product link or banner.
Publisher is person who have any website or blog with traffic and want to generate revenue from visitors. So publisher sell ad space or use any third party ad network for ad placement on there site. For every click on ad banner on publisher which generate earning based on CPC rate.
Before further detail about both types lets see how CPC or PPC rate works on the bases of simple formula
For Advertiser :-
Cost Per Click = Total Advertising Cost / Total Ad Clicks
Cost Per Click= Total Earning / Total Ad Clicks
Its is based on the total budget set by the advertiser and on that bases how many total clicks they need. The results is in the form of every click rate which is CPC.
Different Types of PPC (Pay per Click) Advertising
Mostly PPC ads are based on two methods Flat Rate PPC and Bid Rate PPC.
Flat Rate PPC
In short and simple words if the advertiser setup the fix rates of CPC. That type of ads is consider as Flat rate CPC. It is mostly take place in direct advertising or even many third party ad networks available. So the fixed rate CPC will be provided for total clicks on ad banner. Normally it is beneficial in direct advertising relationship.
Bid Rate PPC
This technique is mostly used by big third-party networks. Because in third-party ads their is no direct relation between advertiser and publisher. Agencies having many different advertisers and Publisher with websites on different niches. So Agencies rotate ads automatically and fill ad banner with highest paying ad which depend on visitor location, interest, niche and many other factors. So the Bidding is done for highest rates according these factors. Rate may vary because relevant and irrelevant ads will displayed on web pages. Overall performance of bid based network is good but earning for publisher totally depend on website or blog niche.
How Advertiser Grow Their Business With PPC Ads ?
PPC based advertising is traditional and basic method to promote and get traffic online. PPC adverting depend on two different parties, an Advertiser or a Publisher both take its benefit equally. Advertiser setup the total budget and approx amount traffic with be generated according to the CPC rate . Which makes an advertiser clear that how much money is required for total amount visitor they need and will it be profitable for business. For PPC based advertising you need to concentrate on following factors Like
- How Much Budget You Have ?
- How Much we want to spend for total Visitors ? Means setup a CPC rate for every click.
- Target users according to Interest, behavior, GEO location. Try to make better mechanism to adjust the best CPC for these different factors.
- Make Sure that Revenue generated should be more than your expenditure on the PPC campaign.
So if you want to advertise your brand, website, blog, services page, landing page or any other product. You can need to join as an Advertiser on Ad exchange networks or agencies. For better startup i recommend to go for these 3, 4 for PPC companies.
How Publisher Can Earn Money With PPC Ads ?
On another of side of advertiser their is a Publisher. Website or blog which place ads and they earn from then is a publisher mean who publish and promote ad unit. Publisher having 100% benefit just they don’t need to spend anything and their is no risk of loss. Whenever a person starts a new website or blog. They want to earn revenue from it. So the basic and simplest way is just placing few ads which are based on PPC.
Now Question arise is How will you earn just by placing advertisement on website or blog ? Who will given you money ?
Their are many third party agencies for ppc ads. Person has need to join as a publisher on behalf of its website or blog. After joining they will provide ad unit code which a publisher have to placed on there blog or website. Then from these banners publisher earn money.
List Of Best PPC (Pay Per Click) Publisher Ad Networks
Here are some networks which offer good CPC rates. These networks are highly trusted and publisher can earn decent revenue.
For More PPC Based network i recommend to read full article about Best PPC (Pay per click) Sites For Publishers. Where you will find more networks from which publisher can earn money.
At the end i hope all doubt regarding PPC or CPC will almost be clear. It necessary to learn for everyone before making internet marketing as profession. I try to explain each and every part of about Pay per click advertising and how to will be beneficial for both advertiser and publisher. In case you want any information or you feel something is missing in topic. Feel free to share your thoughts in comments.