Updated: Sep 1
If you are into digital marketing PPC and PTC are the terms you may have come across very often. PPC is a form of online advertising where advertisers pay for each click on their ads, while PTC is a method for individuals to earn money by clicking on ads. They serve different purposes within the online advertising ecosystem, with PPC being a strategy used by businesses to promote their products or services and PTC being a way for individuals to earn a small income by interacting with ads.
This article will shed some light on the use and differences between these two terms.
Pay Per Click (PPC)
It is a model where an advertiser pays for every click a user makes on their product or service. The payment process usually follows CPC metrics. The cost per click is decided based on the quality score of your item. It is a measure of the price one is paying for every click one gets on their product or service. The lower the CPC the higher the advertising campaign is termed successful. CPC depends on the bid price and the quality score of the item.
This is the process where an advertiser bids for the placement of their ad on the Google search results page. If we consider google PPC, depending on the relevance and quality score of the item google places the ad on the top of the page. One can differentiate between the normal search result and a PPC ad with the reference of an "Ad" prefix before the search result item. Again the placement position depends on the quality score and maximum bid.
Just like google, amazon also provides a platform for sellers to bid for their product clicks and display. This is a marketing platform that charges the seller on every click made by the consumer. Again the charges are based on CPC rates. Amazon also provides cost per 1000 or CPM options as well, where the advertiser is charged based on every 1000 impressions.
If you want to make sales and grow your business this is the best marketing medium to leverage. For advertisers who have less traffic can use this mode to increase their engagement and views. Though this may look easy, the real success through this campaigning strategy lies in the quality score of the product or service. It matters how good and relevant the content is to that of the competitor's content. The CPC prices may be controlled using the right AdWords or keywords that cost the advertiser less while managing to meet the campaign targets.