CTR PPC

Digital Marketing Presentation

CTR PPC and CPC

What is CTR? CTR Stands for Click-Through rate A ratio showing how often people who see your ad or free product listing end up clicking it. Clickthrough rate (CTR) can be used to gauge how well your keywords and ads, and free listings, are performing.

How to Calculate Click-Through rate CTR Formula Total Click 100

CTR = Total Impression

CTR is the number of clicks that your ad receives divided by the number of times your ad is shown

For example, if you had 5 clicks and 100 impressions, then your CTR would be 5%. o Each of your ads, listings, and keywords have their own CTRs that you can see listed in your account. o A high CTR is a good indication that users find your ads and listings helpful and relevant. CTR also contributes to your keyword's expected CTR, which is a component of Ad Rank. Note that a good CTR is relative to what you're advertising and on which networks. o You can use CTR to gauge which ads, listings, and keywords are successful for you and which need to be improved. The more your keywords, ads, and listings relate to each other and to your business, the more likely a user is to click on your ad or listing after searching on your keyword phrase.

What is PPC? PPC Stands for Pay Per Click

Pay-per-click (PPC) is an online advertising model in which an advertiser pays a publisher every time an advertisement link is “clicked” on.

Alternatively, PPC is known as the cost-per-click (CPC) model. The pay-per-click model is offered primarily by search engines (e.g., Google) and social networks (e.g., Facebook). Google Ads, Facebook Ads, and Twitter Ads are the most popular platforms for PPC advertising.

How the PPC Model Works  The pay-per-click model is primarily based on keywords. For example, in search engines, online ads (also known as sponsored links) only appear when someone searches a keyword related to the product or service being advertised.

Therefore, companies that rely on pay-per-click advertising models research and analyze the keywords most applicable to their products or services. Investing in relevant keywords can result in a higher number of clicks and, eventually, higher profits.  For publishers, the pay-per-click model provides a primary revenue stream. Think about Google and Facebook, which provide free services to their customers (free web searches and social networking). Online companies are able to monetize their free products using online advertising, particularly the PPC model.

Pay-Per-Click Models  Flat-rate model  Bid-based model

1. Flat-rate model In the flat rate pay-per-click model, an advertiser pays a publisher a fixed fee for each click. Publishers generally keep a list of different PPC rates that apply to different areas of their website. Note that publishers are generally open to negotiations regarding the price. A publisher is very likely to lower the fixed price if an advertiser offers a long-term or a high-value contract.

2. Bid-based model In the bid-based model, each advertiser makes a bid with a maximum amount of money they are willing to pay for an advertising spot. Then, a publisher undertakes an auction using automated tools. An auction is run whenever a visitor triggers the ad spot.

Note that the winner of an auction is generally determined by the rank, not the total amount, of money offered. The rank considers both the amount of money offered and the quality of the content offered by an advertiser. Thus, the relevance of the content is as important as the bid.

What is CPC? CPC Stands for Cost Per Click

Cost per click (CPC) is an online advertising revenue model that websites use to bill advertisers based on the number of times visitors click on a display ad attached to their sites.

The primary alternative is the cost per thousand (CPM) model, which charges by the number of ad impressions, or views, of the display ad, regardless of whether or not a viewer clicks on the ad.

The cost-per-click model is also known as pay-per-click (PPC).

KEY TAKEAWAYS  Websites bill advertisers based on cost per click (CPC), which is an online advertising revenue model.  Content publishers often use a third-party company to create matches with advertisers.  Google's AdSense platform is one of the largest of its kind.

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