The CTR (click-through rate ) is the percentage of users who click on an ad out of the total number of users who have seen it. The system compares the ad with similar ones based on their quality and the price they are willing to pay and shows the winning ad in the first place. In the case of the latter, the advertiser establishes a bid or maximum price that they are willing to pay for each click. Here you can agree on a fixed price for each click or determine the price through an auction. Therefore, the link between cost and objectives is even more evident than in the case of PPC.ĬPC is the price paid by the advertiser for each click on an ad. PPA (payment for acquisition). In this case, the advertiser pays each time a user performs a certain action, like downloading an app.Keep in mind that with this model you do not know how much you will pay for each visit, due to difficulties in predicting how many clicks each additional thousand impressions will generate. PPM (payment per thousand). Here, the advertiser pays a fixed amount for every thousand impressions, meaning every time the advertisement is shown a thousand times to the users.Therefore, it’s important to distinguish it from others which can include: The aim is to generate a specific type of user action, such as registering or buying a product.Īlthough PPC is a very common option, it is not the only payment model for online campaigns. The idea of a pay-per-click campaign is to "buy visits" for a specific site. ![]() PPC or pay per click is a digital advertising model where an advertiser pays an amount (fixed or determined by auction) each time a user clicks on one of their ads and visits their website.
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