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The internet has become one source of making money easily and one of the many moneymaking opportunities online is through pay per click marketing. It is not only a popular advertising tool online but it has also given good opportunities for millions of website owners.
Pay per click marketing was introduced in 2002 and it has then become a popular marketing tool as Google Adwords also adopted the concept. However, advertising cost in this method of online advertising may vary widely.
Pay per click marketing works by putting your ads on websites. It means you have to make an agreement with website owners to display your ad on their sites. The posting of your ads does not involve cost but when interested online users click on your ad, you have to pay the website owner the agreed rate per click of your ad.
There are two ways in determining the cost in pay per click marketing. It can be determined through flat rate and through bid-based.
In flat rate pay per click marketing campaign, you will agree with the website owner of a fix rate that you will pay for every click of your ad in his website. Most often, companies and businesses online have a list of rates called a rate card for this model.
In the bid-based pay per click marketing, the cost per click of the ad is determined through bidding. Together with other advertisers and companies who are interested to post their ads on a particular ad spot, you will be competing to get the lowest cost per click of your ad. However, because this is done through bidding, the rate per click is determined on how much you are willing to pay for every click of your ad.
In choosing any of these models to follow, it is however important to keep in mind that the main goal of pay per click marketing is not just getting clicks to your ads but getting sales of your products. Therefore, it is wise to weigh the cost that you are investing and the value of that in terms of potential sales of your product.
