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Online Advertising within Your Means

By on June 29th, 2011
Online Advertising Within Your Means

One of the most popular campaigns in online marketing today is pay-per-click (PPC) advertising.  It is where advertisers or online business owners pay only for every click of their ads hosted by popular websites and search engines. PPC in search engines requires the advertiser to bid on keywords or key phrases that are relevant to the likely searches of their target audience, while publishing sites usually offer a fixed PPC rate, instead of the bidding method.

Pay-per-click advertising has two ways to find out the cost per click (CPC) – the bidding and the flat- rate system. PPC ads are largely based on the interest of your target audience, marketing goal, timeline and your location.

Learn more about the two models used on pay-per-click ads:

Flat-rate

In this model, publishers offer fixed rates for every click of the ad, allowing advertisers to decide on a certain fixed rate that is within their means.   Publishers or ad hosts often have rate cards that contain a set of corresponding cost-per-click in each area of their website. Rates are usually based on the popularity of the website in which the PPC ad is placed. Thus, the page or pages that generate more traffic will likely have higher CPC that those that generate less visitors. However, if you’re considering this method, it is still better to first talk with publishers to learn how you can avail of reasonable rates.

Advertisers with minimal paid advertising budget tend to see fixed rate PPC as a cost-effective method since publishers usually give priority to long-running and high-budget campaigns.  Hence, if you’re targeting a localized market, flat-rate may not be a viable option.

Bid-based

It is said to be the most preferred PPC model because of its affordability in which advertisers have a chance to bid on keywords that are closely relevant to their target audience. However, getting the best spot can be challenging as you will be competing with other marketers. Your location and timeline as well as other factors will largely determine whether you get the best spot or not.  Therefore, the highly targeted your keywords are, the bigger chance of winning in the bid.

These factors may produce a number of bidders who may win over a particular keyword.  But the price of their bid determines their spot in the search engine results page. Obviously, Google is now a major player in the market and getting the best spot on their search results may require a more serious Google adwords management to be incorporated in your overall PPC management.

At present, a growing number of both small and large business owners prefer pay-per-click advertising because it provides them options that are just within their budget.

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