Pay Per Click

Topics: Pay per click, Click-through rate, Advertising Pages: 2 (706 words) Published: December 14, 2012
Pay Per Click MiIndia.Com
There are two primary models for determining cost per click: Flat-rate and Bid-based. In the Flat-rate model, the advertiser and publisher agree upon a fixed amount that will be paid for each click. In many cases the publisher has a rate card that lists the cost per click (CPC) within different areas of their website or network. Bid-based, The advertiser signs a contract that allows them to compete against other advertisers in a private auction hosted by a publisher or, more commonly, an advertising network. Each advertiser informs the host of the maximum amount that he or she is willing to pay for a given ad spot (often based on a keyword), usually using online tools to do so. The auction plays out in an automated fashion every time a visitor triggers the ad spot. * Prices are subject to advertisement slot availability and specific period of advertisement. * You can either give a link to MiIndia website or MiIndia design on behalf of them, before the expiry date you get chance to Renew the ad. Format of Images/Files: Gif, JPG Images, Company Logo, Announcement details in Microsoft word, PowerPoint slide show or Adobe Pdf file (Limit to one page). The Cost Per Click is Determined By The Following Formula.

V= Value of Conversation- How much is each person who takes an action worth to you. R= Conversation Rate- How many clicks do you need to Convert. C= Cost per click- The price you would pay per click to break even. V/R = C

E.g. If a Conversation is worth $ 100 (V)
It takes 10 clicks to Convert (R) $100\10 = $10, you can pay up to $10 per click. Anything less is profit, anything more is a loss.
Example: If you think it’s worth 25 cents to have someone visit your website, you can set US $0.25 as your MAX CPC, you will pay maximum of $0.25 when a Person reads your ad and click it and you pay nothing if they don’t click. Actual CPC is often less than MAX CPC because with the Ad words auction, you only pay enough to beat the bid...
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