An internet advertising model where advertisers pay a publisher (usually a search engine, social media site, or website owner) a certain amount of money every time their ad is clicked. For search engines, PPC ads display an advertisement when someone searches for a keyword that matches the advertiser's keyword list, which they submit to the search engine ahead of time.
There are two ways to pay for PPC ads:
- Flat rate, where the advertiser and publisher agree on a fixed amount that will be paid for each click. Typically this happens when publishers have a fixed rate for PPC in different areas on their website.
- Bid-based, where the advertiser competes against other advertisers in an advertising network. In this case, each advertiser sets a maximum spend to pay for a given ad spot, so the ad will stop appearing on a given website once that amount of money is spent. It also means that the more people click on your ad, the lower PPC you'll pay and vice versa.