What is Pay for Performance?

Pay for performance is an umbrella term used by Internet advertisers to describe search engine-based ads. The concept behind these ads is that the company only gets billed for the ad when it “performs” for them—for instance, a customer clicks or calls. There are three main types of pay for performance ads currently at work on the major search engines—Pay Per Click, Cost Per Acquisition and Pay For Calls.

Pay Per Click is the most well-known pay for performance advertising method. Advertisers bid on keywords related to their core services/products or targeted customer demographics. When these “bid-on” terms are entered into a search engine, Pay Per Click ad links appear on the search results page. When a Pay Per Click link is clicked, the user is transported to a landing page (or homepage) of that business’ Web site—this is called a click-through. There, the business attempts to convert the visitor to a customer.

Cost Per Acquisition works similarly. However, instead of paying for click-throughs on an ad, marketers pay only when the visitor actually takes action on the landing page of the business Web site. For instance, an advertiser might only be charged if a Cost Per Acquisition ad leads to a sale, a subscription or a phone call.

Cost Per Acquisition ads are in some respects a “safer” bet for advertisers. However, these ads can be monumentally expensive, particularly for high-powered key phrases, so make sure you assess your budget before you purchase numerous Cost Per Acquisition ads.

Pay For Calls ads drive traffic to phone lines similar to how Pay Per Click ads drive traffic to Web sites. When an advertised link is clicked, the user is presented a toll free hotline for more information. When users dial the hotline, they are connected to an operator at the advertiser’s company. A live representative can then close the deal or provide more information about the goods or services. Pay For Calls ads can be more expensive than Pay Per Click ads, but they allow the advertiser to establish a direct connection with the customer and don’t require a business to have an official Web site.

Superpages Pay Per Click

Get new customers at the click of a mouse! If you use your Web site to generate sales, then Superpages.com Pay Per Click advertising is the solution for you. Pay Per Click spotlights your business to potential customers, and turns browsers into buyers. And the best part is you only pay for the customers who actually visit your business Web site.

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