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Pay Per Click / Cost Per Click

 

There are different models when it comes to search engine marketing. One of the most famous ones is the pay-per-click also known as cost-per-click model. The first pay per click programs were offered in 1996 by Open Text and then Goto.com, later Overture and after 2003 Yahoo! Search Marketing. Google started its AdWords program in 2000. In 2009 Yahoo! and Microsoft formed an alliance to keep up with Google in pay per click business.

 

Pay-per-click means, that every time a user clicks on an advertisement you placed in one of these search engines, you have to pay for each click. The advertiser sets the maximum amount he is willing to pay-per-click and a complex algorithm with hundreds of factors calculates, if your advertisement is shown or not.

 

In the beginning of search engine marketing the advertiser who paid the highest c-p-c was the one shown on top. But soon the teams at Google, Yahoo! and Bing understood, that if the advertisement on top doesn’t get clicked, the high bid is useless. That’s when additional factors were invented in the pay-per-click models.

 

Nowadays, not only the bid, but also the keyword you bit on, the click-through-rate and the quality factor of every single keyword are some of the factors that are very important.

 

There are other models like pay-per-sale, pay-per-call, pay-per-mille.

Pay-per-click is a good way to get visitors to your site easy and instantly.

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