Advertisers typically bid on keyword phrases relevant to their brand or product. If an advertiser has shown maximum bid on it over the other advertisers, then he is likely to get the ad space. In contrast, some sites commonly charge a fixed price per click rather than using a bidding system.
Pay-per-click is calculated by dividing the advertising cost by the number of clicks generated by an advertisement. The basic formula is:
Pay-per-click ($) = Advertising cost ($) / Ads clicked (#)
Types of pay-per-click advertising
- Paid search marketing- Paid search marketing means you advertise on the search engine result pages or a partner site by paying either each time your ad is clicked or when your ad is displayed.
- Display advertising- It isadvertising on websites or apps through banners or other ad formats made of text, images, flash, video, and audio. The main purpose of display advertising is to deliver general advertisements and brand messages to site visitors.
- Social media advertising- it includes advertising on social media channels such as Facebook, Twitter, LinkedIn. There are also some social networks which can be used for ecommerce advertising like Instagram, Pinterest, Snapchat.
- Retargeting PPC advertising- Retargeting involves serving display ads to people who have already interacted with your business online. Basically, retargeting allows you to serve ads to people who have visited your website and bounced back.
- Price comparison website advertising
People who search for products on price comparison sites are doing research for a product. People use these sites because they seem to buy. They want to narrow down their search. Advertising on these sites is also a best technique.
- Affiliate advertising- An advertiser pays a blogger to promote the advertiser's products or services on the blogger's site and the criteria is based on clicking the ad or purchasing the product.
In summary, websites that utilize PPC Advertising Services will display an advertisement and you will be benefited based on the number of clicks and conversions.