Tools used in SEM

Q7. What Is Pay Per Click Advertising?

Ans: Pay per click advertising (PPC) is a model of internet marketing where advertisers pay a fee each time that one of their ads is clicked on. Essentially, it’s a way of buying visits to your site as opposed to attempting to earn those visits organically.

Q8. How Does Pay Per Click Work?

Ans: In order for ads to appear along with the results on a search engine (which are usually called a Search Engine Results Page, or SERP), advertisers cannot merely pay more in order to make sure that their ads appear more notably than their competitor’s ads. Rather, ads are subject to what is known as the Ad Auction, an entirely automated process that Google – as well as other major search engines – use in order to determine the relevance and validity of advertisements which appear on their SERPs.

Q9. What Are The Benefits Of PPC Advertising?

Q10. Explain Pay-Per-Click Models

Ans: Commonly, pay-per-click advertising rates are determined using the flat-rate model or the bid-based model.

1. Flat-rate model

In the flat rate pay-per-click model, an advertiser pays a publisher a fixed fee for each click. Publishers generally keep a list of different PPC rates that apply to different areas of their website. Note that publishers are generally open to negotiations regarding the price. A publisher is very likely to lower the fixed price if an advertiser offers a long-term or a high-value contract.

2. Bid-based model

In the bid-based model, each advertiser makes a bid with a maximum amount of money they are willing to pay for an advertising spot. Then, a publisher undertakes an auction using automated tools. An auction is run whenever a visitor triggers the ad spot.

Note that the winner of an auction is generally determined by the rank, not the total amount, of money offered. The rank considers both the amount of money offered and the quality of the content offered by an advertiser. Thus, the relevance of the content is as important as the bid.

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