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LogoutPay-per-click (PPC), also called cost per click, is an internet advertising model by which advertisers pay a set fee each time that users click on their AdWords ad.
In the PPC model, these ads are generated automatically and triggered in response to the user’s search query. All of the advertiser’s ad text appears above or next to the search results. Advertisers need only supply a few initial settings such as targeting criteria and budget caps and then may leave campaign management software to handle many aspects of running profitable campaigns for them.
Pay-per-click advertisements are delivered via Google servers, which target users based upon keywords they have entered when searching on google.com or one of its owned properties. Advertisers are charged only when their ads have been displayed via the search results page, or if a visitor has clicked on the advertisement.
I myself employ this model, as I find it to be more attractive than traditional online advertising models. The traditional model is similar to an auction – you pay x amount of dollars for your ad to appear in y position on the such-and-such website, and then you hope people will click on that ad =) as opposed to PPC’s “pay ONLY for results” approach.
Pay-per-click campaigns are sometimes criticized for increasing costs without improving conversion rates; however, certain forms of pay per click advertising can lead to increased sales at lower cost - typically due to targeting options available with pay per click advertising (boosted by the knowledge graph) rather than traditional banners which must be cleared, or other forms of online advertising (also boosted by the knowledge graph).