Online advertising has been a major component of the internet. Online advertisements may be in the form of banners or text links. For an owner of a website, hosting these ads are means to compensating his efforts in making his website and giving information in his site.
These advertisements are just some of the ways that a website owner can make money online and one scheme that websites can actually engage in is the pay per click scheme. In this scheme, advertising cost involved is dependent on the clicks made to the banners and links.
In pay per click, the number of clicks represents how many consumers online are interested on the product or the business being advertised, thus business owners pay website owners every time their ads are being clicked.
The cost of a click of an ad is however determined in two ways in pay per click marketing. It can be flat rate or determined through bidding.
The flat-rate method in determining the cost is simply done by an agreement with the website owner and the business owner. Usually, the business owner keeps a listing of the rates he is willing to pay for every click of his ad and the rates usually depend on the contents and the number of visitors of the web page.
In the bid-based method, the cost of a click is determined by how much a business owner is willing to pay for one click to his ad. If the business owner wins the bidding, the maximum amount he bids for a click will be the cost of a click to his ad. The bid-based pay per click is usually used in advertising in search engines like Google. The winning bidder will then have an ad spot in the search engine results page.
The cost in pay per click though has no standard rates. It is generally based on how much a business owner is willing to pay for a click on his ads, whether the ad spot is on the search engines or in websites. One important thing in pay per click though is that, more traffic would eventually mean, having an opportunity to have a higher pay per click of the ads posted on it.
These advertisements are just some of the ways that a website owner can make money online and one scheme that websites can actually engage in is the pay per click scheme. In this scheme, advertising cost involved is dependent on the clicks made to the banners and links.
In pay per click, the number of clicks represents how many consumers online are interested on the product or the business being advertised, thus business owners pay website owners every time their ads are being clicked.
The cost of a click of an ad is however determined in two ways in pay per click marketing. It can be flat rate or determined through bidding.
The flat-rate method in determining the cost is simply done by an agreement with the website owner and the business owner. Usually, the business owner keeps a listing of the rates he is willing to pay for every click of his ad and the rates usually depend on the contents and the number of visitors of the web page.
In the bid-based method, the cost of a click is determined by how much a business owner is willing to pay for one click to his ad. If the business owner wins the bidding, the maximum amount he bids for a click will be the cost of a click to his ad. The bid-based pay per click is usually used in advertising in search engines like Google. The winning bidder will then have an ad spot in the search engine results page.
The cost in pay per click though has no standard rates. It is generally based on how much a business owner is willing to pay for a click on his ads, whether the ad spot is on the search engines or in websites. One important thing in pay per click though is that, more traffic would eventually mean, having an opportunity to have a higher pay per click of the ads posted on it.
About the Author:
About the Author: Sean Galusha is the founder and CEO of Localize Internet Marketing, a Internet Marketing Company for Small Businesses. He and his team of experts strive to deliver targeted local results to their clients through the use of Internet marketing techniques such as Google AdWords Management.
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