Pay Per Click is an online advertising pricing model where advertisers are charged each time their ad is clicked.
Pay-per-click (PPC), is an online marketing model meant to generate traffic on a webpage, in which the advertiser pays the publisher depending on the number of clicks the ad got.
PPC is often confused with Cost per Click (CPC) and although these two go hand in hand they are separate terms, as PPC is the advertising method and CPC is the advertising metric.
Pay-per-click advertising is centered around keywords, so when advertisers set up a PPC campaign, they will add keywords describing the product or service they are trying to sell, so that their ad will reach the right target.
There are 2 main Pay Per Click models available for digital marketers:
In which the cost of a click on the ad is fixed, and the final amount is paid by multiplying the number of clicks with the price of a click, or a budget is set previously and the ad runs until the entire amount of money is spent.
Examples: Social media channels like Facebook, Twitter, Linkedin.
Bid based PPC
The competitive form of PPC, where the advertiser pays the publisher depending on the position of the ad and the competitors’ previously set price.
Examples: Search engines such as Google, Bing, Yahoo.