Pay per click is a popular billing model in online marketing, which is mainly used for campaigns and advertising on the Internet. A company or agency pays a certain fee to a provider such as Google for each click on a placed ad. The purpose of advertising is to achieve a higher presence on your own website. With this click payment, payment is only made if the ad is actually clicked on and the user has reached the website.

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What is Pay Per Click (PPC)?

In online marketing, there are different billing systems with different prices. The costs are based on the number of clicks generated. Compensation models such as PPC and CPC (cost per click) can make sense if they can be used to increase traffic on the website and attract more customers.

The payment method pay per click goes hand in hand with banner advertising or text ads. This is called Adwords in the search engines. Companies that advertise on Google and other providers do not pay for the display of the ad, but only if interested users actually click on it and are redirected to their own website. In addition to being placed in search engines, display banner advertising is also possible on external websites, portals or blogs. This method is called affiliate marketing.

CPC differs from the PPC billing model, although they are often used interchangeably. It is not based on the type of campaign and ad, but on the price per click. Accordingly, CPC is associated with a fixed price and an associated keyword. The company that offers the highest click price receives the highest-ranked advertising space.

Why do you need pay per click?

For the presence and the high ranking in search engines, it plays an important role how many users visit the website. Campaigns are therefore always geared towards SEO. Adwords with PPC or CPC prove to be beneficial for increasing the rate of visits to the website and ranking in the search engine.

What are the advantages of PPC?

The billing model makes sense for businesses that need higher visibility of their ads and website. The advantages of this payment system are:

• Full cost control
• Guaranteed visit to your own website
• Increase in traffic
• Better perception through high positioning in the search engine
• Greater reach for the products and campaigns offered
• Target group accessibility and customer acquisition through search-optimized Adwords
• Low wastage

Where is pay per click used?

The billing methods PPC and CPC are common in search engine and affiliate marketing. The search engines provide companies with advertising space that is clearly marked as an ad for the user and is ranked high. Accordingly, the advertisement appears first when searching with certain keywords.

However, since the advertising space is limited, the principle of the highest bid applies to Google and Co. The more the advertiser pays for the click, the higher the placement. The advertising display is target group-specific and tailored to the search result. If the ad is clicked, the advertiser will be charged.

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