Pay-Per-Click (PPC) explained for a Marketing Class

Pay-Per-Click (PPC) explained for a Marketing Class

Pay per click is the most prevalent advertising model online. To understand how it works, we need to understand the costs and the actions that are taken to create value.

Pay-per-click is and advertising model that is used to direct traffic to a website, in which an advertiser will pay the publisher every time an add is clicked. It is also called Cost Per Click, in that there is no cost until the advertisement is clicked.

The best example is Google AdWords, which shows your ad for free, but only charges you when it is clicked.

The other prevalent advertising method, the traditional method going back to newsprint, radio and TV, is that you pay per view, or have a placement fee.

Within Google AdWords you will see impressions of your ad, clicks of your ad and the Click Through Rate or CTR. Your Average Click-Through-Cost is the amount you are being charged across many clicks.

0:00 Introduction to Pay Per Click, PPC
0:13 Pay-per-click Defined
0:47 Google AdWords Account
1:38 Cost Per Click (CPC) Calculation Formula
2:38 Cost Per Click Campaign Planning.