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Pay-Per-Click Models
Pay-per-click advertising rates can be determined using either of these models namely, the flat-rate model or the bid-based model.
In the flat rate pay-per-click model, an advertiser pays a publisher a fixed fee for each click. Publishers generally keep a list of different PPC rates that apply to different areas of their website. A PPC Service Provider in UK can serve you in keeping these records. Note that publishers are generally open to negotiations regarding the price. A publisher is very likely to lower the fixed price if an advertiser offers a long-term or a high-value contract.
In the bid-based model, each advertiser makes the bid with a maximum amount of money they are willing to pay for an advertising spot. Then, a publisher undertakes an auction using automated tools. An auction is run whenever a visitor triggers the ad spot. The winner of an auction is generally determined by the rank, not the total amount, of money offered. The rank considers both the amount of money offered and the quality of the content. Thus, the relevance of the content is as important as the bid.