CPC Advertising – How Does It Work?

Value based purchasing, or “pay-per-performance” is a common model in many industries including insurance, entertainment, and traditional marketing. In online advertising, we use the term CPC (Cost per click) or PPC (pay per click) to denote that same model. CPC is an effective model for advertisers who want to assess the interest and effectiveness of an ad.

By WMADV – WEBMEDIA

Photo: Suphakit73

Photo: Suphakit73

Quite simply: an advertiser runs an online ad, but only pays the website owner if and when the ad is clicked on by a user. The advertiser does not necessarily pay just to run the ad, but pays each time a user clicks. If an ad does not generate clicks, the advertiser does not need to pay anything.

While CPC is a common model, some websites use a bidding system on key words, while others charge a fixed price per click. If the former, some ads will be pricier than others, but you can choose popular keywords that will generate many impressions and increase the chances of having your ad clicked on, resulting in a popular and successful ad but a more expensive campaign.

cpcCost-per-click is easy to calculate, simply divide the cost of the ad by the number pf clicks generated.

While there is potential for click fraud by programs or corrupt individuals, Google and other leading technology firms are developing and implementing systems that protects CPC advertising from wilful abuse.

The text was written by Webmedia (WMADV) – a leading global online ad network. The network delivers what’s important, high-quality products for high-quality advertisers.

WEBMEDIA - WMADV

Webmedia at Webmedia - Wmadv
Webmedia is a leading global online ad network that delivers what's important, high-quality products for high-quality advertisers.

Contact us: Address: St. Haorgim 24, Ashdod, Israel
Phone: +972 86229900
Fax: +972 8536851
Email: contacts@wmadv.com
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WEBMEDIA - WMADV

Webmedia is a leading global online ad network that delivers what's important, high-quality products for high-quality advertisers. Contact us: Address: St. Haorgim 24, Ashdod, Israel Phone: +972 86229900 Fax: +972 8536851 Email: contacts@wmadv.com

About WEBMEDIA - WMADV

Webmedia is a leading global online ad network that delivers what's important, high-quality products for high-quality advertisers. Contact us: Address: St. Haorgim 24, Ashdod, Israel Phone: +972 86229900 Fax: +972 8536851 Email: contacts@wmadv.com
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One Response to CPC Advertising – How Does It Work?

  1. Rardin says:

    well said and written! Thanks so much

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