Pay-per-click

Pay-per-click (PPC), also known as cost per click (CPC), is an internet advertising model used to drive traffic to websites, in which an advertiser pays a publisher (typically a search engine, website owner, or a network of websites) when the ad is clicked.

Mechanism

PPC is commonly associated with first-tier search engines (like Google Ads and Microsoft Advertising). 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.

Models

• Flat-rate PPC: The advertiser and publisher agree upon a fixed amount that will be paid for each click.
• Bid-based PPC: The advertiser signs a contract that allows them to compete against other advertisers in a private auction hosted by a publisher or, more commonly, an advertising network.