PPC is the most commonly used payment model for SEM position in the main Search Engines such as Google, Bing or Yahoo, as well as in Social Media (Facebook or Twitter Ads). It is a model of payment for online advertising where the advertiser only pays for the clicks on the ads. It is a perfect model for online advertisement where the merchant only pays for the obtained clicks. It is perfect for segmenting audiences and make the ad visible only for people who is looking for the different tags previously selected by them.
These campaigns can be designed and launched much faster than traditional campaigns although a previous exhaustive research process is essential. Additionally the information of the campaign is registered real time, which allows the modification on the fly of the segmentation strategy and the advertiser’s tags based on the obtained results. The statistics generated by these PPC Campaigns will allow the optimization.
If an advertiser runs a PPC Campaign through an agency they will find payment models which are better oriented to protect the customer, such as the SEM on a commission basis. In this scenario the advertiser doesn’t have to allocate a budget to PPC Campaigns as they will only pay for the sales obtained from the advert. The agency is responsible of the cost per click and will only invoice the advertiser for the commissions over each validated transtaction. So its a risk free model for the advertiser which ensures a greater budget flexibility compared to traditional media, as they don’t even need to allocate a specific budget to the SEM Campaign and excellent ROI is asured.-
Running a SEM campaign on a commission basis also ensures the increase of the online brand presence through free ad impressions, reinforcing their branding strategy. The Agency asumes at allttime the incidences management that may result such as the usual double-click made by certain users to open the ad, etc.