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Pay-per-click (PPC) has an advantage over cost-per-impression in that it conveys information about how effective the advertising was. Clicks are a way to measure attention and interest. If the main purpose of an ad is to generate a click, or more specifically drive traffic to a destination, then pay-per-click is the preferred metric.
Pay per click marketing can be done through ad networks such as Google Adwords or by paying for placement on a specific site. The pricing structure of most pay per click marketing is built upon an auction model that takes keyword competition into consideration to determine the cost per click (cpc) or the cost per impression. (CPI).
The cost of a Google Ads campaign therefore depends on a variety of factors, including the maximum amount an advertiser is willing to pay-per-click of the keyword, and the quality score of the ad (based on its relevance and click frequency and ad extensions).
Quality Score is a metric used by Google, [1] Yahoo! [2] (called Quality Index), Facebook [3] (called Ad Quality) and Bing [4] that influences the ad rank and cost per click (CPC) of ads.
The most common form or keyword advertising, focused on payment methods, is pay per click (PPC), with other forms being cost per action (CPA) or cost per mille (CPM). The first documented attempt at keyword advertising was 1996, by the search company OpenText, just a few years after the first attempt at banner advertisements. However, the ...
They can generate revenue on either a per-click or per-impression basis. Google beta-tested a cost-per-action service, but discontinued it in October 2008 in favor of a DoubleClick offering (also owned by Google). [2] In Q1 2014, Google earned US$3.4 billion ($13.6 billion annualized), or 22% of total revenue, through Google AdSense.
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related to: google keyword cost per click