ITM Marketing Blog

Pay Per Click vs Pay Per Impression; What’s the Difference?

ppc advertisingThose who induldge in Internet marketing may from time to time venture into pay per click or pay per impression marketing or affiliate programs. An Internet marketer can be on either end of the spectrum with both of these terms, meaning that they can either be the one paying per click or impression or they can be earning money through pay per click and pay per impression affiliate programs.

Both of these terms are commonly used and commonly known, but what exactly is the difference between pay per click and pay per impression?

Pay Per Click

Pay per click means that the advertiser only pays for the ad when an Internet user clicks on it. Advertisers are typically not charged a fee to set the ad up or for when Internet users see the ad but don’t end up clicking on it and going to website the ad is linking to.

On the other end of the spectum, website owners and bloggers sometimes place pay per click ads on their websites so that they can earn money. When a website viewer clicks the ad and is taken the outside link, the website owner is paid a certain amount per click.

Pay per click can be low cost or it can be enormously expensive. In regards to search engines that offer pay per click programs for advertisers, the ad can get expensive when it is using very common keywords or the advertiser chooses to make sure that ad is displayed a certain number of times throughout any given time period. The more that the ad is viewed, the higher the cost per click can be.

Pay Per Impression

Pay per impression is very similar to pay per click with one major difference. Instead of paying per click, the advertiser pays for every time the ad is simply viewed by an Internet user. In other words, every time an ad is exposed to an Internet user’s eyes, the advertiser pays for that view even if there is no click through.

For the blog or website owner who includes pay per impression ads on their website, this means that they are making money every single time an Internet user sees the ad when they land on their website.

Of course it would seem as though pay per click would be a better option for advertisers and marketers since the Internet user literally has to click the link to visit the advertiser’s website. However, pay per impression advertising can sometimes (not all the time) be cheaper than pay per click. Even though the advertiser’s website is not being viewed by the user, the user may remember the ad and come back at a later time to click it or the company name may get stuck in their head so it is not a total loss.

Another thing to note is that there are also programs out there that combine pay per click and pay per impression programs. In these instances, the advertiser pays one amount per impression and another amount every time an ad is clicked.

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Posted on January 22nd, 2011 by in General, Internet Marketing, marketing tips, PPC Marketing / Tagged , , , / 36 Comments

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