Cost Per Click Company
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Cost Per Click
The term cost per click, or CPC refers to the amount of money that an online client pays to an advertising company or website when a visitor clicks on an advertising link on the website. The sequence of action is as follows:
Company or organization wishing to dedicate part of its budget to CPC makes an agreement with one of the major search engines. Internet users click on the company or organizations advertisement. Company or organization pays the search engine company for each time a unique internet user clicks on the advertisement. Repeat.
Google and Cost Per Click
Online advertising has brought in billions of dollars in revenue for internet companies like Google. Its startling to think that until recently, Google sold no physical product. The bulk of its multi-billion dollar annual revenue is from advertising. Controlling the worlds largest search engine gives Google huge opportunities to make money.
History of Cost Per Click
Cost per click is related to pay per click, an idea presented to the public in 1998 by the founder of a company that would later be acquired by Google competitor, Yahoo. A few years later, these services became more common as advertisers began to see the benefit of having increased internet traffic.
Types of CPC
There are two main methods for determining how much money is paid for each unique click in a cost per click campaign.
Flat Rate CPC
Bid Based CPC
Flat Rate CPC are found when an advertiser agrees to pay a set amount for each click before the campaign begins. Advertisers can opt to pay more for their advertisements to appear in more prominent locations on the web page or for their advertisements to show up on more heavily visited web pages.
Bid Based cost per click is determined by the amount that an advertiser wishes to pay for a certain type of ad, including factors such as keywords, website and location of ad. There can be multiple advertisers bidding on a particular kind of ad space with the highest bidder receiving the chance to display their ad. This type of cost per click is usually managed by a specialized software program designed to handle large volumes of campaigns.
The Future of CPC
Cost per click campaigns will likely continue to increase as the content of the internet also continues to increase, making it more and more important to be able to target specific internet visitors.