March 5th, 2020 / Author : TrendiByte
PPC fees may be flat or bid-based. Comparison shopping engines are the most common users of flat-rate PPC. These are search engines or networks that generate highly compartmentalized sponsored links or ads with good viewer targeting capabilities. Rate cards are typically used and prices vary with every network or content site.
Advertisers wishing to have their ads shown on more popular content pages with valuable visitors pay comparatively more for these ad spots. Most popular ad networks use bid-based rates for pricing their services. Each advertiser submits the highest amount they are willing to pay for ad slots, and bids are automatically compared and processed by bid management software every time a search term or keyword is triggered by a web user.
Day, time, and geographical locations are the most common filters set by advertisers in an auction-based ad contract. When an internet user enters a given keyword or group of keywords, filters are applied by ad network systems and only qualifying ads are entered into the bidding process.
The search engine display page typically has multiple ad slots which results to multiple winning bids. The ad with the highest bid stands a good chance of occupying the coveted top spot, but other factors such as quality and relevance can affect final ads placement. Major ad networks may allow appearance of PPC ads on the sites of their network partners or affiliate publishers.
Third-party media are typically content sites. The page context, niche, or subject determines the types of ads that are going to be displayed. Publishers get a decent share of the advertiser’s fee from Google. Contextual ads, as these PPC ads are called, generally have lower click through and conversion rates and are relatively less valued than search engine display ads.
The cost per click (CPC) of paid search ads are commonly not based on bid amount alone. Most ad networks use a ranking and pricing formula that factors quality, ad content, and relevance equally in relation to bid amount. Ad rankings are determined by multiplying the cost per click (CPC) or bid amount with the quality score. The ad with the highest combined score gets top ranking and wins the auction.
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