What is Pay Per Click (PPC) Marketing?

If you find out more about online advertising , sooner or later you will come across the term “Pay-per-Click” (PPC). In this article we explain what this means for marketing, what advantages PPC marketing has, and what the costs are.

What does pay-per-click actually mean?

“Pay per Click” is a method of billing used in internet marketing. Website operators with a high reach – called “publishers” or “affiliates” – include links for a retailer on their website. This merchant uses the reach of the publisher or affiliate to win customers who click on the link to get to his shop or website. For every click, the merchant pays the site operator a commission .

So it is paid per click: pay-per-click .

How does pay per click marketing work?

For many people, the many English terms in the world of the Internet are quite confusing. You only understand train station and then you believe that this type of advertising is not for your own company. But that would be a shame – the advertising world of the Internet is actually not difficult to understand. Basically, it works the same way as in the analog world. Here is an example :

A fruit press advertiser displays flyers in a busy fruit store. He agreed with the owner of the fruit shop that he would get € 0.25 for every flyer that a customer takes away. After three days, the advertiser finds that 100 flyers have been taken away by customers. The fruit shop owner receives 25 €.

If you transfer this example to the Internet, the flyer becomes a banner or link and the fruit shop becomes a well-visited website. Taking a flyer with you is equivalent to clicking the Internet user on the banner. The operator of the website is only paid for the active click of a customer: Pay-per-Click (PPC).

The difference between search engine and affiliate marketing

There are different types of PPC advertising: search engine marketing and affiliate marketing . We have already discussed the variant with the affiliate in the above example. The affiliate is the fruit dealer. In the world of the Internet, therefore, the one who offers the advertising space (his website).

Then what is search engine marketing ? What would that look like in the example above? The fruit press advertiser would be handing out his flyers on the street. The problem with this is that not all passers-by are interested in fruit presses. The advertiser spends a lot of money on his marketing, but with his watering can principle he only reaches interested people by chance.

There are now big differences between the analog world and the Internet : The interested person – the potential customer – can be identified directly on the Internet using the search engine . Because if someone enters a search term that has something to do with the subject of “fruit press” – a so-called keyword – he is a potential customer.

The Internet user is then shown target group-specific advertisements , so-called ad impressions. The advertising company does not have to pay anything for the mere display of the advertisement. Costs only arise when the user clicks on the banner that appears: Pay-per-click.

Whether affiliate or search engine advertising: PPC is used for both. Whether the customer buys in the end or not is not relevant with the payment model. As in the analog world, the entrepreneur pays for the introduction to his product in advertising – that is, only the potency that his product may be bought.

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