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PPC, PPV, CPA, What Does It All Mean?

Internet Marketing is like alphabet soup. Especially for someone just coming into the industry. What do all these different three letter abbreviations mean? It’s pretty confusing, even when trying to explain it to someone. I’m sure you can find some very in-depth articles extolling the virtues as well as the evils of these types of marketing approaches so I’m going to try to be succinct.

PPC stands for “pay per click” and generally refers to advertising that is placed on different sites and locations across the web. The advertiser will be charged a certain amount every time someone clicks on the ad. The trick for the advertiser is getting the visitor to complete the offer whether from an affiliate network or their own product. The BIG trick is paying as little as possible for each click to maximize profit from the offer.

CPA stands for “cost per action” and is the amount earned by an affiliate when a visitor completes the offer. Sometimes the offer can be as simple as submitting a zip code or email address and receiving a small fee in return. Other offers might require purchases or subscriptions and generally have a higher payout. Converting higher paying offers is an art form in my opinion and requires lots of research into keywords, demographics, and good copy writing to not only convince people to click on your ad and visit your landing page, but also to convert your visitors.

PPV stands for “pay per view” and is similar to PPC without requiring a “click”. All that is required is a “view”. In other words, you are charged every time your ad is shown whether anyone clicks on it or not. Because of the volume involved with PPV advertising the costs are usually measured in fractions of cents. It still comes down to finding the right offer that will convert and getting it in front of the right people.

After trying these types of marketing approaches I realized that my personality was not compatible with what I consider “higher risk” marketing and instead of trying to push traffic to my offers, I would rather pull traffic to my offers. Recalling my college physics classes, pulling is easier than pushing although the process may take a bit longer.

Just my opinion.
Keith

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