Cost Per Click

Written by Patricia Tunstall
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Cost per click on the Internet is determined by several factors, including how many pieces of information you want to elicit from people who click on your ads. Basic information consists of name, address, zip code and/or email address. Beyond this, there are extra charges per item for age, income, home ownership, credit cards, checking accounts, and any other data desired.

The intent of using cost per click, per inquiry advertising on the Internet is to employ more effective methods than just placing an ad on search engine sites. What you as an advertiser want is online lead generation that gives you potential customers who have indicated some interest in your product or service by clicking on your ad. This click takes the customer to a landing page, which is hosted by the marketing company that is supporting your ad campaign.

Taking Customers to the Next Steps

The purpose of the landing page is to collect the information you want in order to pre-qualify customers before permitting them into your website. The cost per click is determined by the number of people who actually fill in the form that asks for the desired information. These are your leads, and your per inquiry advertising cost is based on the number of leads you receive.

The potential customer who fills out the form is directed to your website, where complete information on your product/service is laid out, as well as information about shipping and payment options. Overall, your costs are reduced by the marketing agency's selection of the best keywords used by search engines. The agency cuts your costs by determining the best keywords with the lowest cost factors.


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