Advertising in any form has the goal to attract more customers and more revenue. Like advertising on television or in print ads, the world of online advertising shares the same purpose.

Basically online advertising sets out to attract customers by using the Internet, with websites and search engines as their medium. The Pay per Click (PPC) advertising model is where a host is compensated each time the promoter’s advertisement is clicked. The Cost per Click (CPC) is the actual amount that is paid out by the advertiser to either the search engine or website owner for each click that occurs. Websites that utilize this type of advertising will often present an advertisement or text link, when there is a common term between the websites keyword query and the advertiser’s keyword list. In other words, when a website has related information to the advertiser, a link will be displayed either on the side or above or in line with the website’s original content depending on the website. There are a couple different variations of pay per click online advertising which include Cost per Mille (CPM ), Cost per Visitor (CPV), Cost per Lead (CPL), Cost per Click (CPC), and Cost per Action (CPA).

When performing a search at a search engine you may have noticed that the results return with sponsored links. The sponsored links appear at the top or sides and the advertisers pay to be in these sponsored links sections. Each time a visitor accesses the site through this link, money is paid to the search engine through a prepaid account with that search engine. In order to achieve a sponsored link location websites, advertisers place bids for the amount of money they are prepared to pay per click. Since there are multiple link positions available, the highest bid is placed at the top, the next highest is placed second and so on. In addition to the websites being able to determine how much they pay per click they can also specify how much they… Read the rest