Definitions part 3 - price-per-click (PPC) and cost-per-click (CPC)
Published February 28th, 2007 in metrics.After two a little bit off-the-subject-but-fun-posts we are back with definitions of the most common web and monetization metrics: PPC (price per click) or CPC (cost per click) will have today´s undivided attention while we will close with the CPXes: CPA (cost per article or cost per action), CPO (Cost per Order), CPM (Cost per 1000), CPL (cost per lead) next week.
PPC (price-per-click) from a publishers or affiliates perspective (e.g. yahoo! search, google, msn live search) is CPC (cost-per-click) from an advertisers perspective (e.g. ebay, amazon).
Publishers get paid for every click they deliver to the advertisers. Advertisers in turn pay for every click they receive (given it is not click spam) thus from their perspective the price they pay the publishers can be considered as the cost they incur for every delivered click.
PPC (or CPC) is often connected to Search Results monetization - everyone knows them from the “Sponsored-listings”-section (Yahoo! search), the “Sponsored links”-section (Google) or the “Sponsored-sites” (msn live search).
Furthermore the PPC-concept is used for text links or text-and-image links (see example: youtube)
As easy as PPCs (or CPCs) are calculated as metrics as complicated is the system behind search results monetization by which the price (or cost) of a certain click at a certain time is determined. This is why this matter will be treated in an extra post.
Stay tuned for the CPXes next week!
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