Pay per click has been more than ten years and has become one of the popular advertisement models. They are the leaders in online world ads and have many retailers paying them for the real traffic.

PPC is a model of advertisement in Internet devised by Jeffrey Brewer of the Goto.com company, in February of 1998. The method Pay Per Click (PPC) is used in the motors search, networks search and networks of content: blogs, digital newspapers and so on.

Google start their search engine on December of 1999, implanting its Adwords System in October of the 2000 and its model of  their Pay Per Click (PPC) in 2002. However, the announcements of Yahoo! always been have based on the model of Pay Per Click (PPC) from their introduction in 1998.

This advertising model allows its advertisers to create text announcements to be placed in the search engine and to only pay when the readers really do click in their ads. The search engine, normally the advertisers bid up their excellent keywords for their objective market.

Some Important PPC Terminology

Budget – the amount of money that an advertiser destines for an advertising campaign. Normally it is allowed to create daily, weekly or monthly budgets.

Clickthrough Rate (CTR) – the percentage of clicks to an announcement. One calculates generally with the total number of clicks divided by the number of impressions that an ads received.

Conversion rate – Percentage of users who finally buy or conduct some wished battle in their visits to a Web site.

Cost per click (CPC) – the cost or cost-equivalent paid by click through website of an advertiser.

Cost per thousands (CPM) – the cost by thousand impressions of an advertising announcement.

Geo Targeting – an announcement oriented to a specific geographic region, area or location.

Impressions – the number of times that an announcement is seen by the users.

Labels: Scale Up Profit, Advertising Models, CPM, Geo Target