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What is Pay Per Click?

You want to know what pay per click is and how it works, don’t you? How PPC works and where it’s used in the article below.

Have you ever wondered how and on what basis exist, work and develop websites on the Internet?…

Obviously, there are not so many enthusiasts and activists according to the fact, but the Internet is huge and it continues to grow every day.

Internet websites exist right at the expanse of quite legal money, which they make by showing advertisements on their pages.

So, real money on the Internet, just as well as everywhere else, is made by selling goods and services.

Having sold an item or a service on the Internet, you get a certain percentage for your work.

This is a logical and legal way to make money.

Thousands of people all over the world do it like this.

The aim of every site is to attract traffic.

Usually the main sources of traffic to the site are the searching engines.

They secure the required number of transitions to the site. In order to attract more visitors to your site, you can use the so-called PPC (Pay Per Click) system services.

You have no idea what PPC is and how it works, have you?

Let’s try to figure out what pay per click is.

What is pay per click?

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The abbreviation PPC is deciphered as Pay Per Click.

This is one of the most widespread systems of payment for online-advertisements, which is extensively used by Google, Bing and Yahoo searching engines in order to promote something on the search result pages.

The advertiser places his advertisement on the website and pays only when someone clicks on his ad, i.e. he pays only for traffic on his site.

There also exist some alternative payment systems – CPM (cost per thousand), CPL (cost per lead), monthly and daily payments.

The systems of contextual advertising, which are the mediators between the advertisers and the websites’ owners, are called PPC-systems.

PPC-systems have their own paid searching engines, where the payment is formed from money, which site (advertiser) pays for matching a certain item to a certain request.

You might have guessed that these paid searching engines need traffic.

This traffic is received due to the web-masters, who have their own sites and aim to “pour” maximum of traffic to the PPC program.

After a web-master brought a man to this program, he may either click on any advertisement or leave the page. If this person clicks on the ad, the web-master will get his money.

You must have understood that attracting people by advertisements, you send them to another site, which sells goods or services.

Purchasing those goods and/or services, a person gives a part of profit to you, or we’ll rather say your partner does it.

There are two options of payment:

  1. For every visitor, i.e. pay per click on the advertisement and, as a result, going to another site.
    It does not matter here what happens next, whether he’ll buy something or not – the fact is that you brought him there (to your partner) and you get money for it.
  2. For goods or services’ purchase by those, whom you invited to the partner.

Obviously, the first option is, as a rule, more interesting and appealing.

You somehow send people to the web-site and receive modest sum for their clicks, nevertheless, it’s still money.

This is pay per click itself.

Read also: How to Make Money Selling Ebooks?

What is the sense of paying you money and will he pay honestly?…

Everything is quite simple here.

A visitor may buy an item or a service not immediately, but he will probably remember the site and even recommend it to somebody else.

Pay per click is, first of all, payment for the advertisement of the site itself and, secondly, of what it offers to buy.

A partner may also cheat; there are plenty of such cases.

However, they do not work long, because people stop working with them and do not bring any visitors.

Where Pay Per Click (PPC) is used?

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Pay per click advertising models may be placed on different affiliate web-sites, search engine result pages as well as in social networks.

  • PPC-advertisement in Google, Yandex, Bing and other searching engines.

    It consists of a headline, a link to the advertiser’s site (URL landing) and a product’s description (the text of the advertisement) in order to look very similar to the “organic” result of a search.

    Depending on the QS rating, the advertising links may be located in different places of a search page, more or less advantageous from the point of view of the users’ attention.

    The owner of the advertising resource pays PPC-provider commission for a certain keyword or key phrase, so that entering key combination the searching engine showed the ad of this very advertiser.

    If a user goes to the pay per click link, the owner of the resource must pay for every visitor.

    Interesting: What is Google AdSense?

  • Social networks are considered to be another option to place PPC-advertisements.

    Services may offer various advertisement formats to promote groups, apps, videos, and external sites with pay per click or pay per view.

    The key peculiarity of advertisement in social networks is the possibility to set precisely the targeted audience or targeting.

    The advertiser may set the precise parameters of his targeted users, such as sex, age, place of living, interests, education, etc., which greatly differs PPC-advertisement in social networks from usual contextual advertising.

  • Affiliate sites.

    On affiliate sites PPC-advertisements represent advertising blocks with teasers – a banner with text or graphics, as a rule, corresponding to the theme and page design, on which they are put.

    Many web-masters use pay per click advertisement as a way of making money on the Internet, providing by this wide coverage and relatively high quality of traffic.

    Banners may include information about goods, for example, their pictures with prices, animation, company’s news and so on.

    Their main goal is to attract the attention of the targeted audience.

    Rotation or change of PPC-teasers appears according to the definite algorithm, which shows only those advertisements, which may turn out to be interesting for the users.

    Smart location of advertising blocks, teasing and attractive interface, corresponding to the theme and retargeting option make PPC-advertisement rather efficient. Besides, the total pay for a click on teaser is lower than in case of contextual advertising.

Cost per click (CPC)

Cost per click of PPC-ad depends on many factors:

  • the level of competition in the field;
  • the location of a user;
  • the time of day, season, etc.
  • However, the decisive factor is the level of the targeted page and the quality of advertisement – the higher is the QS (quality score) rating, the higher is the location of the ad in the search page and the lower is the cost per click.

PPC-providers, who find themselves between the advertisers and the owners of the advertising space, sometimes come to the agreement together with companies about the fixed cost per click (Flat Rate PPC).

Nevertheless, advertisers often take part in competitions for the cheaper advertising space (Bid Based PPC) or for more frequent impressions.

Success of any PPC-ad is measured by the returns from every paid click or ROI (return on investment).

Due to this, the advertising traffic also needs optimization by keywords and interface of the ad, in order to reach lower price per click and attracting traffic of higher quality.

How people make money on pay per click (PPC)?

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There are exactly two strategies of making money on PPC: “white” and “black” ways.

“The color” of the strategy is defined by its relation to the searching systems’ regulations – you’ll understand what it means reading the article up to the end.

  1. “The white method” means placing PPC links with keywords on “white” websites, i.e. usual sites, which were made for people, but not for manipulations with searching engines.

    Another option is to put on a site the PPC searching form, with the help of which a visitor of your site will simultaneously conduct a search on the interesting topic and will come to the page with search results.

    This way of making money may be profitable only if site’s attendance is rather high, because visitors are the most important part in making money on PPC.

  2. “Black methods” of traffic delivery are practiced by the masters, who spend days and nights on spamming the top search results by doorway-sites.

    Searching engines fight them all the time, inventing new and new methods of fighting doorways, though there is no end to this war in sight.

    Most doorways “live” (exist in the database of searching engines) not long at all – from few hours to a couple of days, that’s why doorways’ developers generate new sites non-stop.

    Such “black” in many cases thankless and hard work usually brings results much faster than “white method”, i.e. almost immediately.

We hope that now you understand what pay per click is and you’ll be able to use it on your site.

No matter how good PPC-campaign, your site must be set in such way that you were guaranteed the highest profit from every click paid by you.

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