Sniper Marketing Tactics

Pay Per Click: Determining the Rate per Click of your Ad

Online ads are now a common sight over the internet. Different websites may have them in the form of banners and text links and could also be customized according to the look of the website. These ads, in a way, make up for the efforts of the website owner to share information from his website.

Placing advertisements on websites is just one of the many ventures in the internet that can offer you good moneymaking opportunities. This can be done through pay per click marketing. However, in this advertising technique, you will be making money through clicks to the ads in your site and not just by posting them.

The clicks to your ads are equivalent to the number of potential customers you are sending to the business’ website advertising in your site. This is important in pay per click as the cost of advertising will be based on these clicks.

However, the rate or the cost of one click is determined in two ways in pay per click marketing. One way is using a flat rate and the other one is using the bid-based rate.

The flat-rate method in determining the cost is simply done by an agreement with the website owner and the business owner. Usually, the business owner keeps a listing of the rates he is willing to pay for every click of his ad and the rates usually depend on the contents and the number of visitors of the web page.

In the bid-based method, the cost of a click is determined by how much a business owner is willing to pay for one click to his ad. If the business owner wins the bidding, the maximum amount he bids for a click will be the cost of a click to his ad. The bid-based pay per click is usually used in advertising in search engines like Google. The winning bidder will then have an ad spot in the search engine results page.

Although there is no standard rate of how much a click should cost, the cost however is proportional to the number of site visitors a website has. The more site visitors a website has, the higher the rate you can charge for every click of ad posted in your site.