The expansion of digital advertising is now increasing in times of health emergency, when online connectivity becomes the only option for interaction or work for many people.
In this article we will explain what are pay per click services and the benefits that companies and users can achieve. It is a digital advertising model, whereby advertisers pay to Google, websites and portals on which they advertise, only when someone clicks on their ad.
In most important search engines such as Google, Bing and Yahoo, advertisers usually bet on those keywords that are relevant to their potential consumers.
Whereas with content websites, it is normal to charge a fixed price per click instead of using a bidding system. The PPC, therefore, is the amount paid by an advertiser to Search Engines or other websites on the Internet for a single click on your ad. The click, therefore, directs the visitor to the advertiser’s website.
It is clear then that pay per click systems identify web users as possible buyers of the products or services of a specific company. This search for users or potential customers is possible through the search criteria they use, or by the type of content they are browsing. Google AdWords, Yahoo! Search Marketing and Microsoft adCenter are the most important and therefore the main pay per click providers.
They all work under an auction-based model. In addition, all offer pay-per-click ads next to their organic search results, which are typically called “Sponsored Links” or “Sponsored Ads,” which usually appear adjacent to or above the results of the Search Engine pages , or as pay-per-click ads on content websites (Google Search campaigns).
According to experts in the field, there are currently two types of models to determine costs in the PPC: the flat rate and the one based on the auction that advertisers make. However, advertisers should consider the potential value of a click from a certain source. This is because the value of a click is related to the type of user the advertiser expects to receive on their website, and what can offer during that visit both in the short and long term.
Auction fee model
In this type of PPC campaigns, advertisers are conditioned by a contract that allows them to compete with each other in a private auction organized by a web support or, more commonly, an advertising network.
Each advertiser determines the maximum price they would be willing to pay for the click of an ad (often based on a keyword), using the online tools available for them.
Fixed price rate model
Here, the advertiser and the owner of the website where the ad will be located obtain an agreement to have a fixed price to pay for each click.
Many times the website already has a price list to stipulate the CPC, which will depend on the area of the website in which the ad is placed – with a greater or lesser degree of visibility for users – and the content of the pages on which it such ads are found – with a greater or lesser degree of relevance to users. In other words, the more visibility and more interesting content for users, the higher the price per click of the ad.
Finally, there are cases in which advertisers can negotiate lower rates, especially when they express their intention to advertise for a long period of time or have a high budget.
