Wednesday 31 December 2014

Internet Business Basics - Part 15


Business Model 
Flat-rate PPC 
In a flat-rate model, the advertiser and publisher agree upon a fixed amount as payment for each click. Advertisers can negotiate a lower fixed amount committing to a long-term contract. 
The flat-rate PPC model is popular in price comparison services. Price comparison services present the various list of prices for a specific product or service. Examples of this are PriceWatch and Streetprices. An advertiser do not pay to be listed, instead pays for every click on a price. 
Bid-based PPC 
In a bid-based PPC, an advertiser competes with other advertisers in an automated fashion in a private auction of the publisher or advertising network. The bid is the amount that an advertiser is willing to pay for a given ad spot, which is usually a keyword. 
Automated bid management systems are used to maximize success and cover as many areas as possible.

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