Pay Per Click vs. Pay Per Sale

The leading pay per click advertising programs Adword overture and more.

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Postby Jenniferlinn » Wed Dec 31, 2008 6:42 am

Pay Per Sale or PPS (Sometimes referred to as Cost per Sale or CPS) is an online advertisement pricing system where the publisher or website owner is paid on the basis of the number of sales that are directly generated by an advertisement. It is a variant of the CPA (Cost Per Action) model where the advertiser pays the publisher/website only and in proportion to the number of actions committed by the readers or visitors to the website.

In many cases it's not practical to track all the sales generated by an advertisement, however it is more easily tracked for full online transactions, such as for selling songs directly on the internet. Cookies, or minute user-tracking programs downloaded and run in the browser, are used to track the movement of the prospective buyer to ensure that all such sales are attributed to the advertisement in question.

CPS belongs to the larger family of CPA, which is different from Cost Per Impression where advertisers have to pay every time their advertisement is displayed, irrespective of whether the display created any action on the part of reader or visitor to the website or not.

On the other hand, Pay per click (PPC) is an Internet advertising model used on search engines, advertising networks, and content websites, such as blogs, where advertisers only pay when a user actually clicks on an advertisement to visit the advertisers' website. With search engines, advertisers typically bid on keyword phrases relevant to their target market. When a user types a keyword query matching an advertiser's keyword list, or views a webpage with relevant content, the advertisements may be displayed. Such advertisements are called sponsored links or sponsored ads, and appear adjacent to or above the "natural" or organic results on search engine results pages, or anywhere a webmaster or blogger chooses on a content page. Content websites commonly charge a fixed price for a click rather than use a bidding mechanism.

Although many PPC providers exist, Google AdWords, Yahoo! Search Marketing, and Microsoft adCenter are the largest network operators as of 2007. Minimum prices per click, often referred to as costs per click (CPC), vary depending on the search engine and the level of competition for a particular phrase or keyword list—with some CPCs as low as US$0.01. Very popular search terms can cost much more on popular search engines. The PPC advertising model is open to abuse through click fraud, although Google and other search engines have implemented automated systems to guard against abusive clicks by competitors or corrupt webmasters.
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Postby marshtric » Mon Mar 02, 2009 3:21 pm

Cookies, or minute user-tracking programs downloaded and run in the browser, are used to track the movement of the prospective buyer to ensure that all such sales are attributed to the advertisement in question.

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