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Pay-Per-Click
marketing has become an online phenomenon, with marketers only paying
for traffic they receive. As Internet marketing has evolved,
pay-per-click is seen by many as the middle ground between paying per
impression and paying per sale. Advertisers only pay when they receive
traffic that may or may not be targeted. The pay-per-click
advertisements are usually displayed with the advertisement from the
highest paying bidder in the top position. Navigating the complex web of
Internet marketing, publishers and marketers are often confronted with
terms that seem foreign. This simple guide will assist marketers in
navigating the Pay-Per-Click marketing model. Bid - The amount that an
advertiser is willing to pay for a click on a specific keyword. Budget -
The amount of money that an advertiser sets aside for an advertising
campaign. Different publishers allow for advertisers to set daily,
weekly or monthly budgets. Click Through Rate (CTR) - The percentage of
clicks on a link. This is usually a percentage based on the total number
of clicks divided by the number of impressions that an advertisement has
received.
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