Pay Per Click Advertising Models

Conversions are your true determinant of success, as far as PPC Advertising is concerned. Even though you might be able to generate immense traffic for your website, you will be at a huge loss if you are unable to convert them into sales. This is mainly because this form of advertising works on the principle of 'cost for every click' - you pay for every visitor that clicks on your ad; and not earning sales will land you in trouble.

1. Cost per Click – It literally means an advertiser pays the search engine for every click generated through the latter. The amount of commission is a predetermined amount bid by the advertiser himself in lieu of getting his ad positioned on a search engine result page. The minimum amount of bid usually is $0.01, whereas the maximum can even go up to $10 and more. Most search engines also charge advertisers for opening an ad account with them.
   
2. Push versus Pull – Known as Contextual Advertising versus Search Advertising, this model works on 'pushing' ads on third-party sites, and 'pulling' users through sponsored ad links. The former is a process wherein advertisements are randomly placed on web pages that have relevant content to what is stated in the ad copy. And, the latter deals with the simple method of placing sponsored links on SERPs. Here, your ad will be displayed when a user searches for the particular keyword that you are catering to.
   
3. Cost per Impression – Advertisers pay a predetermined amount for per thousand impressions. Also known as CPM, this Pay Per Click Advertising model is popular with products that command huge respect and 'impression' rates in the online marketplace.
   
4. Flat Rate – Search engines get a fixed amount of money for running the whole campaign on their sites. Advertisers pay a standard fee – which can be as meagre as $1 every month – to keep their campaign going, irrespective of the number of clicks generated.
   
5. Pay Per Call – This model is relatively new and quite suitable to all sorts of marketers. Here, the advertiser needs to make payment only when a visitor actually takes the first step towards a prospective sale by calling him up. Although this might reduce the earnings of search engines, it will definitely improve the conversion rates of business owners' websites.

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