When you only pay per click

When you pay only for a click. Or, what PPC is and why this advertising model has become so popular among arbitrage specialists.

A few years ago, pay-per-view was the most commonly used method of marketing advertising. More precisely, for 1000 impressions. But technologies are developing so rapidly that new approaches are constantly emerging. Among them, PPC or Pay-Per-Clickpay per click) is an online advertising model where the advertiser pays for clicks. That is, only after the user clicks on the ad.

Often you can hear that PPC is contextual advertising. We say that this is not very correct. Contextual advertising can work according to the PPC model or some other model, for example, CPA (cost per action) or CPM (T) (cost per 1000 impressions).

This advertising model seems to us to be the most objective tool. The fact that a person saw an ad does not mean that they are interested or remember it. Then why should we pay for it? Instead, when the client has already clicked and gone to the advertiser’s website, you can consider that you have “met”.

The thing about PPC advertising is that it is customized to the target audience – people interested in the advertiser’s product or service. Google’s contextual advertising is paid, but the payment is made per click, and ads are shown to users according to their search queries and online behavior. This makes contextual advertising one of the most effective tools for brand promotion.

You can learn how to work with PPC and start earning as soon as possible at the Google Media Buyer course at our academy. Go to thesite and register for the online training program.

In the meantime, let’s analyze the advantages of PPC

1. PPC performance is easy to measure and track. Marketers can track impressions, clicks, conversions, and history. Systematic tracking allows you to optimize your banners and constantly adapt your PPC bidding strategy.
   
2. Another major advantage of PPC advertising is precise targeting. Advertisers can choose the audience to show their ads to according to various criteria – region, age, and interests.
3. Controlling advertising costs. PPC allows you to control advertising costs. You determine the maximum cost and budget. You can also choose the location, device, time of day, and other demographic characteristics of your banners.
4. PPC gives you quick results. After you place your bid, your banners will be put up for auction almost immediately. The platforms are interested in paid advertising, so they usually approve ads within a day.

What is an auction and how is the CPC formed in PPC?

Cost per click (CPC) is mostly formed based on an auction. This is an algorithm that determines where your ad will be displayed and whether it will appear at all. The most famous provider companies are Google Ads, Meta Ads, LinkedIn Ads, TikTok Ads, and Amazon Advertising.

The choice of an advertising model depends on your goals and business specifics. You can find out how PPC differs from SEO, ASO, and FB and what is more convenient and effective in our next article.