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Advertisers are only charged when a user actually clicks on their ad, hence the name “pay-per-click.” Due to the nature of keywords and the role they play in paid search, pay-per-click advertising can also be referred to as keyword advertising.
In order for ads to appear alongside the results on a search engine (commonly referred to as a Search Engine Results Page, or SERP), advertisers cannot simply pay more to ensure that their ads appear more prominently than their competitor’s ads.
Such advertisements are called sponsored links or sponsored ads, and appear adjacent to, above, or beneath organic results on search engine results pages, or anywhere a web developer chooses on a content site.
Pay-per-click, along with cost per impression and cost per order, are used to assess the cost effectiveness and profitability of internet marketing.
Pay-per-click (PPC), also known as cost per click (CPC), is an internet advertising model used to direct traffic to websites, in which an advertiser pays a publisher (typically a website owner or a network of websites) when the ad is clicked.
Pay-per-click is commonly associated with first-tier search engines (such as Google Ad Words and Microsoft Bing Ads).
Clicks are a way to measure attention and interest.
As with other forms of advertising targeting is key, and factors that often play into PPC campaigns include the target's interest (often defined by a search term they have entered into a search engine, or the content of a page that they are browsing), intent (e.g., to purchase or not), location (for geo targeting), and the day and time that they are browsing.