Online advertising, particularly pay per click marketing, has become popular over the usual advertising methods we have and even from other forms of online advertising. The appeal of pay per click marketing may lie on the online advertising cost.
The cost of pay per click is termed ‘cost per click’. As the name suggests, online advertising cost in pay per click marketing is calculated per click of the advertiser’s ad. A click in the online advertising world is translated as an individual online who is interested in your products or your services. In other words, they are potential customers.
Pay per click advertising can be done through the search engines and in websites as well. In search engines, you bid your way in getting a good ad spot in the search engines page. Google for instance has the Google AdWords tool that follows the pay per click system, and you are allowed to bid for your keyword. By bidding, you offer the amount you are willing to pay for a click to your ad. If you win the bid, you earn a good ad space in the search engine results page. Every time individuals get interested and click on your ad, you will then pay for each click. The cost per click of your ad is the amount you expressed to be willing to pay for the click.
There are no standard rates on how much a click should cost. However, if you bid on a highly competitive keyword, there is a higher tendency for the cost per click to be more expensive. Highly competitive keywords are most often the broad keywords – the keywords that most people type on the search box. Because it brings more traffic, advertisers tend to be drawn to bid for these keywords. Huge online advertising cost in pay per click, or in AdWords in particular, comes from bidding on broad keywords and not getting the right traffic they want.
It is important to note that if you win the bid for a broad keyword in Google AdWords, traffic can increase almost at an instant, and with a relatively expensive cost per click, it can increase your online advertising cost quickly as well. Therefore internet marketing experts most of the time advise you to be wise on the choice of keywords and get away from broad keywords if possible.
If you engage in pay per click marketing using websites, the cost per click of your ad is not determined through bidding, but agreed with the website owner. Most often, the cost per click is based on the quality of the website, the volume of traffic it generates, and its rankings in the search engines. The advertiser and the website owner usually agree then on how much a click would cost if you put your ad on the website.
Pay per click marketing in websites still follows the same mechanism. The advertiser will pay for every click generated by his ad. In this case, the online advertising cost involved is the number of clicks to your ad multiplied by the cost per click of the ad that the advertiser and website owner has agreed.
Article Source: http://EzineArticles.com/?expert=Carolyn_Anderson