When it comes to generating traffic to your website and eventually converting the visitors into actual clients, pay-per-click (PPC) campaigns are a good way to start off. What happens in these campaigns is that you pay a PPC Company like Facebook, Google and Bing to display your website when the most relevant searches are made by their visitors. In Pay Per Click Advertising, you only pay for the results you get. Payments are only made to the affiliate website if and when a link to a website is clicked. With PPC campaigns, you are assured of getting clicks to your website whenever a keyword related to what you offer is used to query the affiliate website.
With the many benefits you reap from pay-per-click advertising, it’s a worthwhile form of marketing. But how do you get to know the right company to hire and how do you finance the campaign? What one PPC company will charge you is not what another will. It depends on the number of users it exposes your website to and the likelihood of those clicks turning into actual clients.
There are two modes of paying for pay-per-click advertising that a PPC company can allow. There is the flat-rate and the bid-based PPC. In Flat-rate PPC, the company selling the services sets a fixed amount to be paid for each click. They will probably have a pay-rate card showing the charges in different parts of their websites. These will differ from one part of the website to another depending on how valuable the clicks generated from there will be to your business. A company that will use this mode is mainly a comparison shopping engine. Their ads are compartmentalized into categories and, therefore, allow specific client targeting by advertisers. With the flat-rates, you can ask for a lower charge if making a long-term contract or pay more for your website to rank highly.
Another way to finance campaigns is bid-based. In this kind of financing, you are required to sign a contract with the PPC company you are working with to allow you compete in private auctions hosted by the company. You then state how much you are willing to pay for a particular ad spot depending on the keywords an interested client searches for. Other advertisers also do the same and every time an interested client searches for the specified keywords or related phrases, the automatic bid is run and the highest bidder picked, so their ad appears on top of the ranking. This is the system used by major search engines with minimal specificity guarantee but many users. They include Bing, Yahoo and Google.
So, do you opt for fixed rate or bid-based? This question lacks this or that answer. Choose what is within your budget and what you think will give your business the best returns.