Sponsored links are text-based advertisements that describe an advertiser’s Web site and the products and services offered. A hyperlink is included, so that interested consumers may click on the advertisement and go to the advertised site.
Typically charged on a Pay per click model, when Web surfers click on an advertisement and visit the advertiser site, charges are made on a pre-determined amount that the advertiser has agreed to pay. The prices of sponsored links are usually set through a bidding system, where higher bids (along with other factors including performance, etc.) result in more prominent placement.
"Service" engines let advertisers provide feeds of their service databases and when users search for a service offering links to advertisers for that particular service appear, giving prominence to advertisers who pay more, but letting users sort their results by price or other methods. Some Product PPCs have expanded into the service space while other service engines operate in specific verticals.
Noteworthy PPC services include NexTag, SideStep, and TripAdvisor.
Pay per call
Similar to pay per click, pay per call is a business model for ad listings in search engines and directories that allows publishers to charge local advertisers on a per-call basis for each lead (call) they generate. The term "pay per call" is sometimes confused with "click to call"[Website Traffic Yahoo! Search Marketing (formerly Overture) Yahoo Inc., Accessed June 12 2007]. Click-to-call, along with call tracking, is a technology that enables the “pay-per-call” business model.
Pay-per-call is not just restricted to local advertisers. Many of the pay-per-call search engines allows advertisers with a national presence to create ads with local telephone numbers.
According to the Kelsey Group, the pay-per-phone-call market is expected to reach US$3.7 billion by 2010.
Ad serving
Ad serving describes the technology and service that places advertisements on web sites. Ad serving technology companies provide software to web sites and advertisers to serve ads, count them, choose the ads that will make the website or advertiser most money, and monitor progress of different advertising campaigns.
Two types of internet companies use ad serving: web sites and advertisers. The main purpose of using an ad server is different for both of them:
For a website, the ad server needs to look through all the ads available to serve to a user who is on a page and choose the one that will make the web site the most money, but still conform to the rules that the advertiser and web site have agreed. For example if a web site has 10 different advertisers that have paid for a big square ad, the ad server must decide which one to serve (or display). One advertiser may have only agreed to pay for ads from 9am - 5pm. If it is after 5pm, then the Ad Server must not serve that one. Another advertiser may only have paid to show one ad to each user per day. The ad server must therefore see if a user has seen that ad before, on that day and not serve it again if the user has seen it. Another advertiser may have agreed to a high price, but only if the person watching the page is in the United States. In that case, the Ad Server needs to check the IP address to determine if the user is in the US and then decide which is the highest paying ad for that user, in the US, at that time, given what that user has seen in the past (also known as IP targeting or geo targeting).
For an advertiser the ad server needs to try to serve the ad that is most likely to result in a sale of the product advertised. For example if a user is viewing a page, the advertiser's ad server needs to decide from previous history, what ad that user is most likely to click on and then buy the product advertised (also known as behavioral targeting). If the user is on a technology page, then the ad server may know that on technology types of pages, the ad that works best is a blue one with mostly text and pricing and numbers, not the green ad with a picture of a model and little text. The central ad server will therefore serve this ad, to try and get the highest probability of a sale from the ad.
Terminology Pay Per Click Programs
CTR - Click-through rate - Ratio of actual clicks on an interactive ad as a fraction of the total impressions.
CPM - Cost Per Thousand Impressions - Total impressions of a given advertising unit divided by 1,000
eCPM - Effective Cost Per Thousand Impressions
CPI - Cost Per Impression - Method of monetizing advertising impressions. Refers to the cost paid per 1,000 impressions of the ad unit. Does not factor in any user interaction or response.
PPC - Pay per click - Method of monetization. Cost paid for each click, or direct response to an ad unit.
CPA - Cost Per Action or Cost per Acquisition - Method of monetization. Cost paid for each order, application, or other post-click response that is directly tied to interaction with an ad unit.
ROAS - Return on Ad Spend - Total revenue less cost of audience acquisition directly related to the revenue. A Measure of direct yield on advertising.
Is it really possible to Earn through Pay Per Click Programs?
On our statistics each tenth user of our sites finds something interesting to itself in announcements so earnings in " Pay Per Click Programs " is really!!!
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