What is Pay Per Click Marketing?

17 Aug

The term pay-per-click abbreviated PPC, originally came from the English language usage, however worldwide it has been widely accepted and means “pay per click”.

The Pay-per-Click payment method is used mainly in online marketing. Here, you will be charged per click on an advertisement such as a banner or a text ad. The advertising company, therefore, does not pay for the advertisement (ad impression) of the switched advertising itself, but only when actually a click is done. To get most out of any PPC campaign you need have the fair knowledge of Google AdWord and Keyword Planner. If you are not familiar with these terms then get Pay Per Click Services from professional PPC Agency. There are different types of pay-per-click advertising. They can be placed on search results in search engines such as Google and Yahoo (search engine marketing).


How does pay-per-click marketing work?

• In Search Engine Marketing

• In Affiliate Marketing



In search engine marketing, the pay-per-click payroll model works as follows:

The search engine provides advertising spaces, which are also marked as advertisements. These advertising spaces can be booked by advertising companies. Since, however, only limited advertising space is available, the principle of the highest bidder applies here. The more an advertiser wants to pay for one click, the more advantageous the advertising medium is placed in the search results display. The user now enters something into the search input field and gets a result display presented to match his searched keyword. This includes both organic search results and paid ads (for example, Google AdWords). The user is thus displayed with target-group-specific ads, so-called ad impressions. Pay-per-click is only payable on a successful click. This is how you reach a user exactly when he is interested in the offer. Whether or not the customer buys at the end is, however, irrelevant to CPC. It alone counts that he has reached the advertiser’s website via the ad.


The pay-per-click model in affiliate marketing works similarly:

So-called publishers or affiliates offer their advertising space on a portal, blog or another website. The advertisers or merchants can book these advertising spaces in the form of banners or text links. Users access the publisher’s page when surfing, and the advertisements are displayed. For a relevant advertising ad, it can now come to a click on the part of the users. At a final click, the merchant then pays a commission, for example, via pay-per-click to the affiliate.


Other success-based billing models are, for example:

• Cost-per-click: is often used as a synonym for pay-per-click

• Cost per order: cost per order

• Cost-per-sale: cost per sale

• Cost-per-lead: cost per contact

• Cost-per-action: Cost per action

• TKP (Thousand Contact Price) / Cost-per-Mille: Cost per 1000 Ad Impressions



Example calculation:

The company ABC has placed a banner on the website XYZ. On Sunday, 20 users clicked on the banner. Previously, the company abc negotiated a CPC of 2 euros. The website XYZ now receives a commission of 40 euros.



5 Good Reasons for Pay-Per-Click Marketing:

• You pay only when a user has truly perceived your advertising and has clicked on it consciously.

• You reach a target group that more likely to buy your product or service.

• They significantly increase the range of your products.

• You have full cost control because you determine the click price as far as possible.


Are you interested in testing the benefits of pay-per-click marketing for your company? We will be happy to advise you on all possibilities in the PPC services. Just contact us via our contact form and we will call you back shortly!

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