Pay Per Click vs Pay Per Conversion – Understanding the Differences

Pay per click is a interesting process. When a user does a search on Google, for example, for a specific product or service. Google runs an auction in the background, that takes milliseconds to complete. The search engines looks at the advertising pool, identifies the relevant adverts, and then ranks the advert based on its quality score and maximum bid amount.

PPC strategies are focused on driving qualified traffic to your website, visitors that are actively searching for products or services you provide. You remain in control of your budget, choosing a maximum amount you are happy to pay when a person clicks on your advert.

What is Pay Per Conversion

Pay per conversion is more than drawing visitors to your website, it's about what they do once they are on your site. You may want your visitors to make a purchase, sign up for a newsletter, or request a quote. Each action is a potential conversion. In the pay per conversion model payment is related to what the visitor does once they are on your website. The conversion is the desired action.

Pay Per Click Advantages

Pay per click offers an uncomplicated way to drive qualified traffic to your website. It is easy to use and is versatile, adapting to your advertising budget, target audience, and more. It enables you to track your performance, so you can adjust your campaign as needed. You remain in control at all times.

Some of the other benefits associated with pay per click include:

• Increased brand visibility
• Cost effective
• Good return on investment
• Immediate results

Pay Per Conversion Benefits

Pay per conversion focuses on turning visitors into customers, this offers the highest return on investment, where the price you pay provides measurable outcomes. This advertising model focuses on quality, over quantity. It provides you with information on how successful your campaign is, removing any guess work. 

Other benefits of pay per conversions includes:

• Visitor interaction
• Pay for real results boosting your return on advertising investment
• Get visitors to take a desired action
• Retain customers
• Make every click count 

Are There Any Disadvantages?

Pay per click and pay per conversion both offer excellent advantages for businesses. Though it is important to understand some of the challenges these have, so you can develop a strong strategy to achieve success.

One of the disadvantages is that it is not always easy to attract relevant traffic. While your chances of having a qualified visitor arrive on your website, it is not guaranteed. This can result in a higher advert spend, therefore you need to pay close attention to your campaign, ensuring that you are achieving the results you need to achieve, reducing your cost per click.

Conclusion

Both pay per click and pay per conversion can be beneficial to your brand. Pay per click drives quality traffic to your website, while pay per conversion means you only pay when the visitor takes a desired action, such as making a purchase, completing an online contact form, or signing up for your newsletter.