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More Web Marketing
The Internet advertising model whereby advertisers pay their host when their ad is clicked is known as website marketing. This differs to search engines, where advertisers bid on keyword phrases relevant to their target market. It tends to be content sites that charge a fixed price per click as opposed to the bidding process. The amount of money an advertiser pays for a single click is known as cost per click.
Rather than focussing on driving a high volume of traffic to one website, website marketing provides purchase opportunities by offering financial incentives to partner sites. If the site does not generate sales, it does not cost anything. Sites that make use of website marketing display an advert when a site displays relevant content or when a keyword query matches the advertiser’s keyword list. These are defined as sponsored links or ads and appear next to the results on a page.
Major operators include Google AdWords, Microsoft adCenter and Yahoo! Search Marketing. The cost per click within these operators is dependent upon competition for a keyword and the search engine. Systems have been created to attempt to prevent abuse of this advertising model, which is known as click fraud.
The cost per click varies, dependent upon two models, both are based on the advertiser determining the potential value of a click. The two models are Flat-Rate and Bid-Based. These are both assessed by factors such as the type of individual expected to visit a site and what can be gained from this visit. Targeting is key, as with all types of advertising. Factors of a pay per click campaign include the target’s interest, intent, location and when they are browsing.
Within the Flat-Rate model, a fixed amount to be paid per click is agreed between the advertiser and publisher. The cost per click rate varies, dependent upon network and types of websites. The publisher commonly has a rate card which lists this. Content that attracts more valuable visitors has a higher cost per click than content expected to attract less valuable visitors.
The Bid-Based model involves a contract that is to be signed by the advertiser. This contract allowed them to compete against other advertisers in an auction held by a publisher or an advertising network. Every advertiser states a maximum amount that they are willing to pay for an ad spot, usually based on a particular keyword. An automated auction then plays out every time the ad spot is triggered by a visitor. Automated bid management systems can be created in order to achieve scale and maximise success. These allow for thousands, even million of bids to be controlled by an automated system. This would usually be tied into the website of the advertiser. The quality and quantity of performance data directly correlates with the effectiveness of a system. Therefore, low traffic ads are virtually useless. However, ads with high levels of traffic can achieve huge levels of success.
With a managed campaign from Pagehog you can leave all the technicalities to us and focus on what you are best at, running your business. Call us today on 0845 659 6465 to see how we can help you generate more enquiries through Internet Marketing.
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