Thursday, March 10, 2011

How to measure the cost per click?

There two prominent models for setting the cost per click are available in the market. However in both sort of click cost estimation it becomes too necessary to learnt about the potential value of a click as emerged or emerging from the click. This value is rated upon the fact on the type of individual the advertiser is catering to be a visitor to his or her website, and what the advertiser can earn from that visit, primarily, revenue, both in the short term as well as in the longer term. On the broader spectrum in the market two types of cost per click are much famous as well popular. The first one is flat-rate model, where an advertiser and publisher get agree upon a fixed amount that will be paid for each click. In many cases the publisher has a rate card that lists the CPC at different location for its website and network. The flat-rate model is much popular with the comparison shopping engines that even publish rate cards.  However, these rate cards some times are being occurs as minimal, and advertisers even there can pay more for vast and the greater visibility.

Another method to measure CPC is Bid-based PPC where an advertiser signs a contract that let him to compete with other advertisers in a private auction as organized by a publisher or, rather referred as to be the advertising network. Each advertiser tells the host about the maximum amount that he or she will have to pay for a given ad spot often based upon and based around online tools there so. In case the ad spot is a section of a search engine results page (SERP), the automated auction there occurs whenever a search for the keyword that is being bid upon happens.  All bids for a specific keyword that target the searcher's geo-location, the day and time of the search, etc. are there compared with and a winner there is determined.

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