PPC - Pay per click
Pay per click (also called Cost per click) is an Internet
advertising model used to direct traffic to websites, where advertisers pay the
publisher (typically a website owner) when the ad is clicked. 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. PPC "display" advertisements are shown on
web sites or search engine results with related content that have agreed to
show ads. This approach differs from the "pay per impression" methods
used in television and newspaper advertising.
In contrast to the generalized portal, which seeks to drive
a high volume of traffic to one site, PPC implements the so-called affiliate model
that provides purchase opportunities wherever people may be surfing. It does
this by offering financial incentives (in the form of a percentage of revenue)
to affiliated partner sites.
The affiliates provide purchase-point click-through to the
merchant. It is a pay-for-performance model: If an affiliate does not generate
sales, it represents no cost to the merchant. Variations include banner
exchange, pay-per-click, and revenue sharing programs.
Websites that utilize PPC ads will display an advertisement
when a keyword query matches an advertiser's keyword list, or when a content
site displays relevant content. Such advertisements are called sponsored links
or sponsored ads, and appear adjacent to or above organic results on search engine
results pages, or anywhere a web developer chooses on a content site.
Among PPC providers, Google AdWords, Yahoo! Search
Marketing, and Microsoft adCenter are the three largest network operators, and
all three operate under a bid-based model.
The PPC advertising model is open to abuse through click
fraud, although Google and others have implemented automated systems to guard
against abusive clicks by competitors or corrupt web developers.
Source: en.wikipedia.org
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