A marketer only pays when someone takes action on their ad. What type of advertising model is this?
- Revenue sharing
- Conversion rate advertising
- Pay-per-click (PPC)
- Cost-per-impression (CPM)
Explanation:
The advertising model where a marketer only pays when someone takes action on their ad is known as “Pay-per-click (PPC).” In this model, advertisers are charged only when a user clicks on their ad, directing them to the advertiser’s website or landing page. It’s a performance-based pricing strategy, ensuring that advertisers pay for actual engagement rather than just ad exposure. PPC is widely used in online advertising platforms, allowing advertisers to set budgets and bid on keywords relevant to their target audience. This model is effective for measuring the direct impact and effectiveness of an advertising campaign, as advertisers are billed based on the specific actions (clicks) that users take in response to their ads.