This PPC Advertising is sold and delivered on the basis of keywords by all the Advertising Search Engines. Keywords are the phrases or queries that the internet users search for on the search engines to get their desired information. The keywords that the PPC ad campaign uses can be more than a single word in length. The Advertising Search Engines conduct running auctions to sell ads according to the bids received for keywords and relative relevance of user keywords to ads in the account. However, some keywords are more expensive and some are offered at a very low price based on their demand for the internet users. Also, Profit potential of the keywords also takes into account for the bids made on ads that advertisers want to display when the keywords are searched by the user.
All these bidding and selling of PPC Advertising on the Advertising Search Engines is measured using five different parameters. The advertisers have to pay according to the type of paying options they choose to pay the publishers. Let???s see here at all the five of them.
Cost Per Click (CPC):
CPC or Cost Per Click is an Internet advertising model used to direct traffic to websites, where advertisers pay the publisher when the particular ad is clicked. Advertising Search Engines offers advertisers to typically bid on keyword phrases relevant to their target market. However, content sites generally charge a fixed price per click rather than use a bidding system. In traditional marketing, CPC was viewed as a one way process of reaching target audiences through means such as direct mail, radio ads and television ads whereas of now two way contacts are possible through web based chat, Internet based calls, call back requests or mailing list sign ups and more.
Cost Per Action (CPA):
CPA or Cost Per Action is an online advertising pricing model, where the advertiser pays for each specified action linked to the advertisement. The CPA can be determined by different factors, depending where the online advertising inventory is being purchased. Affiliate networks operate on a CPA basis. CPA systems function most effectively when sales cycles are short and easily tracked. Longer sales cycles and sales requiring multiple customer contacts can be difficult to track, leading to reluctance by publishers to participate in CPA programs beyond initial lead generation.
Cost Per Mille (CPM):
Cost Per Mille or CPM also called as Cost Per Thousand is a commonly used measurement in advertising like TV, Radio and Online advertising. CPM remains the most common method for pricing banner ads.
Click Through Rate (CTR):
CTR or Click Through Rate is a way of measuring the success of an online advertising campaign for a particular website as well as the effectiveness of an email campaign. It measures the number of times an ad is clicked as a percentage of views of the Web page on which the ad appears.
Total Minutes (TM):
Total Minutes or TM is a metric used by net ratings to measure the total time spent on a Web page rather than the number of Web page views.
Certainly, PPC Advertising campaigns can produce immediate results by driving maximum traffic in less time and thus adding up to the revenues.
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Source: http://www.workoninternet.com/business/reviews/miscellaneous/222033-article.html
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