Question

You sit down with Caffe Gustoso's owners to discuss your online advertising plans. You tell the owners that if they decide to incorporate search marketing into the plan, there are three primary payment options: pay per action, pay per click, and pay per view. Search engines favor pay per view because they earn income each time the ad is displayed to the consumer, whereas pay per click generates income for the search engine only when the ad is actually clicked on. Pay per action generates search engine income based on an action such as a purchase. Search engines often provide preferred placement to ads that generate the most income. Which form of payment would you recommend for Caffè Gustoso's search marketing?

Answer 1

Answer: I recommend a plan in two steps:

Starts with a pay per view. Then in 6 months move to a pay per click.

Explanation: First they need to show their brand. Let the market know them. Once they have viewed the could move to a different and expensive less payment method

Answer 2

Answer and explanation:

The best option for Caffe Gustoso is to choose a pay per action advertising plan. Coffee itself is not like other items people would be interested in just checking on the internet. As we are talking about a drink, people are likely to try it. Thus, Caffe Gustoso would be making revenue only when customers are sure they will place an order for coffee which will generate an expense to the business but a sure income.