When starting a contextual advertising campaign, the question of choosing a traffic payment scheme arises by itself. The simplest and most popular solution is to pay for each click on an ad. Most advertisers choose it - and benefit from it. But sometimes CPM allows you to reduce the cost of an advertising campaign and gives a greater result. The main thing to understand is when it is effective so as not to act blindly.

The main payment schemes for traffic in Google AdWords are:

· CPC (cost per click) - pay per click.

· CPM (cost per mile) - fee per 1000 impressions.

· CPA (cost per action) - payment for the target action (for example, a purchase or filling out a registration form).

Unlike the first two schemes, CPA has requirements for campaigns in which you plan to apply it and cannot be used from the very beginning. For example, you need at least 15 conversions for this campaign. Therefore, we will consider only the first two methods.

CPC is used both on search and on the Display Network, while CPM, as expressed by PPC Management Company at Beverly Hills, is “not yet available” for search and works only on the Display Network. Thus, they compete only on advertising platforms.

All ads at the auction are reduced to one denominator - i.e. are transferred to one scheme and compete at the auction based on the given rates. The base (for Google Adwords) is a fee for 1000 impressions: all bids in the CPC are multiplied by the conversion rate of the ad and by 1000.

Cost-per-click or CPC campaign

With a cost-per-click campaign, you can launch a campaign and generate leads in minutes. The speed of acquisition is certainly an attractive argument but your website must be able to convert this traffic at the same rate.

If your website does not contain any call-to-action or online form, forget about the CPC campaign. These are crucial functions that you cannot do without.

You should also make sure you have implemented the following before you get started:

· An optimized website and dedicated home pages

· Conversion and referral tracking tools

· A clearly identified target market

· A well-defined sales process

The cost per action scheme

The cost-per-lead campaign is a viable option for the majority of software manufacturers. By operating via cost per action channels, these companies subscribe to a service and buy individual leads, directly or indirectly. The volume of leads received will be lower and each of them will be more expensive than for a CPC campaign, because they will have been prequalified by a third party, which will lighten the workload of your sales team.

As with the PPC Management Company Culver City, there are several things to identify before launching your CPA campaign:

· The average price to pay per lead

· An efficient sales team

What your business should pay per action?

You can't wait to get all this information with your CPA leads, and that's to be expected! But don't forget that you have a budget to stick to. This means that you need to determine which leads are most suitable for your business.