Pay per click (PPC) is an internet advertising model used on websites, where advertisers pay their host only when the ad is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market. Content sites commonly charge a fixed price per click rather than use a bidding system.
Cost per click (CPC) is the sum paid by an advertiser to search engines and other Internet publishers for a single click on their advertisement, which directs one visitor to the advertiser's website.
In contrast to the generalized portal, which seeks to drive a high volume of traffic to one site, PPC implements the so-called affiliate model, that provides purchase opportunities wherever people may be surfing. It does this by offering financial incentives (in the form of a percentage of revenue) to affiliated partner sites. The affiliates provide purchase-point click-through to the merchant. It is a pay-for-performance model: If an affiliate does not generate sales, it represents no cost to the merchant. Variations include banner exchange, pay-per-click, and revenue sharing programs.
Websites that utilize PPC ads will display an advertisement when a keyword query matches an advertiser's keyword list, or when a content site displays relevant content. Such advertisements are called sponsored links or sponsored ads, and appear adjacent to or above organic results on search engine results pages, or anywhere a web developer chooses on a content site.
Among PPC providers, Google AdWords, Yahoo! Search Marketing, and Microsoft adCenter are the three largest network operators, and all three operate under a bid-based model. Cost per click (CPC) varies depending on the search engine and the level of competition for a particular keyword.
The PPC advertising model is open to abuse through click fraud, although Google and others have implemented automated systems to guard against abusive clicks by competitors or corrupt web developers.
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PPC Overview
Pay per click marketing, with an estimated turnover of $1.1 billion per year and growing at 13 percent per quarter despite the economic downturn, has become vertically integrated into the Internet marketing arena.
Emerging from the banner ads and click through rankings of the early 2000s, pay per click saw initial innovation when Google introduced AdWords Select in early 2002. Google now controls about 50 percent of the PPC market share, followed by Yahoo at 25 percent. AdWords shows the selected ad near relevant search results, as well as on content and search sites within the Google Network.
Pay per click is an Internet-based advertising model used on search engines, content websites and advertising networks where advertising clients pay only when a consumer clicks though the ad to visit that client's website.
Typically the PPC ad is based on keywords to reach a designated target market. When the consumer enters a keyword or phrase into the search engine that matches the client's keyword list, the ad is displayed. The ads appear adjacent to or above the natural search engine results.
The largest PPC providers currently are Google AdWords, Yahoo! Search Marketing and Microsoft Ad Center. The minimum cost per click (CPC) varies based upon competition for the keywords and the search engine's standards.
