PPC Search Engine Advertising (PPC) campaigns are very confusing and can leave the advertisers in trouble. Generally it is also reffered as cost per click (CPC) on the PPC Search Engines. A successful PPC campaigns involves a good keyword research and a good tracking among other parameters involved. This campaign can be expensive if there is a lot of competition for the keywords in the market. So, when you're going to pay for the each click on your website, you will very well want to make sure that good analysis has been done before starting the campaign. After all you are investing your time and cost both.
However, when you go for PPC Search Engine Advertising there is a wide range of parameters to look upon. As an unstructured and roughly planned campaign always fail leaving the advertisers with great loss. Generally there are two types of methods by which your campaign will be measured. They are Flat rate and Bid based PPC models. However, in both the cases the advertiser has to consider the potential value of a click based on the type of lead the advertiser is expecting to receive as a visitor to their website. Apart from this they also have to consider the gain that they are expecting from the visit, which is usually revenue.
Let's see what this Bid based model is?
In the Bid based PPC model, the advertiser are allowed to bid on thekeywords to compete against the similar advertisers in a private auctionhosted by a publisher on the PPC Search Engine network. Here, each advertiser has to inform the publisher about the maximum amount they are willing to pay for a given keyword in the PPC Search Engine Advertisingcampaign. However, many advertisers bid for a single keyword by providing their own unique amounts. The advertiser who bids for high price wins the auction. The amount can however be a penny more too. Hence, the bidding starts and the winning advertisers have to pay to the publisher for each click they receive from an internet user on their advertisement, based on the amount they had bid for.
Apart from this bidding on the keywords, the advertiser also sets the maximum amount that they are willing to pay in an auction for a given ad spot based on akeyword phrase. Once they there maximum amount this cost will be compared by the other advertisers and the advertiser with the highest bid wins the competition. This is similar to keyword bidding as the advertiser with an extra penny wins the bidding auction. The following auction however proceeds automatically when an online visitor clicks on the ad spot that the search engineresults page (SERP) displays. And when the specific ad is being clicked the winning advertiser has to pay the publisher the amount for which he had bid in the auction.
In addition to ad spots on the major SERPs, all the major advertising networks have started in partnerships with 3rd party sites for contextual ads to be placed like the ads that show up on various media channels like blogs and social networks. Those sites are 3rd party partners of the big internet portals that work on advertising and are often referred to as a content networks and the ads on them as contextual ads because the ad spots are associated with keywords based on the context of the page.
At the end, an ad with the highest bid is generally shown up first on the PPC Search Engine, but anyhow additional factors like ad quality and the CPC often comes into play.