Network Handlers is a Search Engine Marketing and Website Development Company in Tampa, FL

Introduction

Web traffic has become an inseparable part of online business, which is booming of late. It not only increases customers, but also enhances the cash flow and revenue generation for a website. People are banking on the popularity of their websites. Website traffic is the lifeline of a website. To draw website traffic, various strategies can be used like the inclusion of keywords, backlinks, and unique content. Among the paid methods of increasing website traffic are PPC (pay per click) and PPM (Pay per mille or thousand impressions).

What is PPC?

PPC or Pay Per Click is one of the most common methods of promoting an online business. In a recent survey, it has been noted that PPC has resulted in two billion dollars per year and has risen to 8 billion dollars in 2008. PPC is one way of controlling the position of the website and its exposure depending on the pricing platform. PPC is the most important method by which webmasters can get targeted traffic and enhance ROI.

PPC is the method by which online advertisers bid for keywords listed by search engines. The keywords are selected on the basis of web usage statistics. The bidders create ads with the respective keywords or phrases. These ads are then featured on the search engine results page.

What is PPM?

PPM or Pay Per Mille Impression is also a paid online promotional method. In this program the webmaster gets paid for every advertisement that is viewed on his/her website. The webmaster profits from every advertisement that is featured on the website and fighting to get noticed. On an average text-based ads are viewed for 7 seconds while graphic ads are viewed for 1.6 seconds.

Origin of PPC and PPM

PPC originated in the late nineties and ever since has been the prime source of revenue for search engines. It managed to survive the early twenty first century dotcom bust. Even today PPC captures the top position when online advertising is concerned.

PPM came into existence soon after PPC. This was initiated as an effective way of reaching out to potential customers. One has to purchase a certain amount of impressions in case of PPM. In the cyber world, an impression is defined as one instance of an ad appearing on a particular website. This method has been extensively used in online advertising.

How PPC works?

A list of keywords is prepared by Search Engines and the keywords are rated according to the bid amount the webmasters are willing to pay. Advertisers bid to be the number one for certain keywords. The highest bidder of a certain keywords is allotted the top slot in a search engine, as others follow. The advertisements are then shown on the results page of the search engine based on the bid that the webmaster agreed to pay for every hit. The greatest advantage of using PPC is in drawing targeted traffic, which can also translate into potential customers.

PPC can benefit a website indirectly too. Sometimes visitors may use a particular site to visit other websites. Not having remembered the other websites, the visitor may continue using that particular website to access the other sites. That site will end up being more popular and resourceful. The visitors will eventually start taking interest in the website rather than using it as a mere stepping stone.

PPC helps in getting added income. When visitors look for a site through the search engine in a website, the webmaster receives 30 percent of the advertiser’s bided amount.

If one spends $1 on every click, 10 clicks will cost $10.

How PPM works?

A webmaster features various advertisements on the web pages. For every advertisement that is viewed by the visitors, the webmaster gets paid. The payment is on the basis of CPM or Cost Per Thousand Impression. The webmaster needs to fulfill no criteria in PPM. The number of ads will determine the pay.

PPM programs also use banners, pop-ups, and pop-under advertisements with varied pay-outs. PPM programs adhere to orthodox rules to accept publishers as affiliates. This is because it involves paying publishers for impressions without knowing if there is any increase in traffic or sales.

In PPM, one may pay $3 for 1000 impressions or views.

Difference between PPC and PPM

In PPC the webmaster gets paid for every click on the advertisements featured on the websites. The pay is dependent on the number of hits made by visitors on the advertisers’ websites. On the other hand, PPM allows webmasters to get paid for every view of the ads on the website.

PPM is more cost effective. In case of PPC, one gets $10 for 10 clicks. In PPM, one spends $3 for 1000 impressions. If the advertisement receives a click for every 10 impressions or views, one ends up paying $3 for 10 clicks in PPM.

Which one is more effective and why?

PPC is a more effective way of promoting the website. Making profits using PPC is easier and the cash that keeps flowing in with PPC is more stable. With PPC the webmaster can earn money with the number of hits that the visitors make. PPC is independent of the number of sales. PPC allows webmasters to get profits from visitors who might not be interested in the services and products of the webmaster. The number of hits generates profits.

PPC can be used to generate profit from the programs itself. What’s more, the website becomes more popular with the use of PPC services. PPC is considered more effective because you get paid for every click rather than views. In PPC one pays only for qualified clicks from surfers who are interested in your niche. PPM is not as reliable as PPC and is not a guaranteed method of drawing targeted traffic.

What is click bank?

Click bank is a place where one can find the greatest number of Affiliate marketing programs. Webmasters can use Click bank to browse through the various products and services that are compatible with their websites. These products and services are ranked based on their popularity. Click bank is platform where associated affiliates and web merchants meet. It helps in delivering the merchants’ campaigns and offers to others.

By being associated with programs like Click bank, one can rest assured that the money will arrive at the end of every month. One should choose the niche and its products with care, emphasizing on its potential. Choosing a niche that is not yet saturated is a wise thing to do.

How affiliate marketing differs from PPC and PPM?

Affiliate marketing is an online marketing process where a website rewards the affiliates for each hits scored by the website through the efforts of the affiliates. In certain ways Affiliate marketing overlaps with the paid search engine marketing techniques like PPC and PPM, but it also has certain disparities. The major difference is that Affiliate marketing is based on the number of sales while PPC and PPM are dependent on the number of clicks or views. Affiliate marketing also follows lenient techniques like publishing product or service reviews which are offered by the partners. With pay per sale technique of affiliate marketing, webmasters can have greater profits in a short term.

Future of PPC and PPM

PPC programs are responsible for bringing instant targeted traffic to the website. However, in the past few years approximately 38 percent click frauds have been detected. Since search engines earn 99 percent of their income through PPC, the scenario will change. Click fraud issue will be eliminated and PPC advertising will graduate to CPA (Cost per action) advertising. This will bring pay for sales rather than clicks.

PPM is considered a lucrative option for people with tight budgets. The low rates of advertisements make advertisers resort to PPM. Although the pay is relatively lower, publishers find PPM pretty reliable. Without having to worry about the number of sign-ups and clicks, PPM will go on to be profitable means of increasing ROI. Text-based ads have great potential in PPM. CPA is predicted to succeed CPM as there is no guarantee if anyone is actually seeing the advertisement. A new trend of targeted PPM is also catching on.

Conclusion

Today most online business is dependent on paid methods of increasing traffic because they give guaranteed results. Methods like PPC and PPM are used to strengthen one’s online presence. In this rat race, every website wants to hog the limelight. Search engines have rendered this job easier. PPC and PPM are being used to maximize the ROI from a website.

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