An online digital advertising model in which advertisers pay each time a user clicks on one of their advertisements.This is typically associated with a traffic objective, as it makes the most sense for advertisers to pay based on clicks when their primary goal is to increase visits to a website or landing page.
The PPC model is commonly associated with search engine and social media advertising like Google Adwords and Facebook Ads.
The model Paid Search uses for the amount an advertiser owes a Search Engine for each click on a paid ad.
The PPC model is auction based and advertisers bid on the keywords they want their ads to show for in the search auction.
Once an advertiser wins the auction, their ad shows within the search results.
Once a user clicks on that ad, the advertiser must pay the bid price of that keyword’s ad.
A Pay-Per-Click is a marketing term used to describe the amount spent to receive a click on one of your digital advertisements.
There are two models by which PPC is generally paid for, but the idea is that every time the advertiser generates a click for your company, you pay them a certain amount.
The first model by which people pay for PPC ads, is the flat rate model. In this model, the advertiser and the publisher agree on a fixed amount that will be paid for each click. If you are sure that you will receive a decent amount of traffic, it is better to go with this approach.
The second model is a bid-based model, where the advertiser competes against other advertisers in a network. Each advertiser will appear in a certain spot and will “bid” a maximum amount of money that it is willing to pay. After that maximum is reached, their ad will disappear. This model is appropriate for those company’s that have a smaller amount of traffic, because it will be cheaper in the long run.