Pay-Per-Click (PPC)

From The Yaffe Center

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(New page: It is a type of pricing model where the search engine provider gets paid every time a user clicks on the advertisement. Google uses CPC pricing model where CPC is calculated as: Google’...)
Current revision (21:48, 6 March 2011) (edit) (undo)
 
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It is a type of pricing model where the search engine provider gets paid every time a user clicks on the advertisement. Google uses CPC pricing model where CPC is calculated as:
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It is a type of pricing model where the search engine provider gets paid every time a user clicks on the advertisement. Pay-Per-Click advertising is commonly used on search engine advertising as well as some other display advertising.
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Google’s CPC = Ad rank of keyword below yours divide by keyword’s quality score + $0.01
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[[Image:cpccal.png]]
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[http://www.chipkin.com/articles/google-adwords-actual-cpc-calculation]
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In the above example, adv A CPC = adv B ad rank / adv. A quality score + 0.01 = 0.24/1.7 + 0.01 = $0.15
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Since there are no ads below advertiser C for the particular [[keyword]] they are charged with the minimum bid price of $0.01 to place their ad.
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Current revision

It is a type of pricing model where the search engine provider gets paid every time a user clicks on the advertisement. Pay-Per-Click advertising is commonly used on search engine advertising as well as some other display advertising.

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